To be honest, the specs on the proposed phone is not new. Wonder how they would structure the ads. It could be quite revolutionary for the advertising industry if it could significantly reduce the ad waste of many other advertising mechanisms. The ideal would be to flight an add via cell phones and people immediately respond coz that is exactly what they are looking for. Combine google ads with the GPS locations of the phone user so the first ads are the closest service provider to your location. Much quicker type of yellow pages. And the phone number is just one button away - mmm... any techies out there wanting to write the software?
I like the idea tho. I wonder how legal it would be to sign a contract with mobile networks for a large amount of data and then run a mobile voip service, jabber etc over it such that users are only able to use your service over a data network. etc especially if u have a device that only allows your services. I think this could kill teleco's even more.
Nothing can stop Google in their dominance of the internet and related sectors. It could certainly be a good thing for everyone considering the free bandwidth and cheap VOIP calls possibilites