Let me rephrase: I really, really hope that is fake. :thumbsdn:
I mean, if it had wifi and 3g it might be fun to play with...but no. It just looks plain awful.
I'll await for more information though before I think this is even a real device. And considering it can't hold music or video, I can't see how it could ever compete with the iPhone which last I checked is a new iPod with some phone features.