Cool. Ok, Phil Askey doesn't quite like it, but he's not always the measure of all things. I don't always agree with him on cameras either.
For me, Apple's description sounds pretty cool. Automatic syncing of downscaled images to the iPod, display via simple cable directly on the TV. You can take your digital photos with you and torture relatives with the obligatory vacation slideshows without having to bring a computer along.
Ok, an integrated card reader would certainly have been awesome, but then Apple would have had to commit to a format and that would have been a bit much. However, they could have implemented USB synchronization with the camera, that certainly would have been possible. But maybe an update will come next year. Anyway, it sounds appealing enough to me that I'm already thinking about whether I should talk my current 30GB iPod off to Jutta to get myself the new Photo part. At Digital Photography Review (dpreview.com) there's the original article.