This is good for one-way communications (e.g. watching video), but not good for two-way communications / interactive applications (e.g. gaming, conferencing, etc.) due to the lag. For office tools and powerpoint presentations it might suffice, however.
I think Loomis is on to something with the phone-to-TV idea. I've had similar thoughts since I got an hp iPAQ 6945. As a road warrior, I would love to be able to shed my laptops (yes, I have to carry one per client) and just carry a PDA-phone device around that can connect up to monitors, keyboards, mice, networks and printers. The elimination of airport hassles alone would make such a device worth its weight in gold.
Current technologies don't allow for more than ~640x480 res output from such devices as far as I am aware, but if I could output 1080p and have enough CPU power for office tools I would lose the laptops forever.