here's a video of Intel demoing it on a Mac Pro (torn down)
http://www.youtube.com/watch?v=khPx1dEIPnA
arn
So what happens when I plug my external hard drive into my monitor connector?
If you all watch the brief video that Arn linked too you would see that the motherboard (?) has a light peak "router" on it so all traffic from the cables will probably go through the router and be directed to/from the correct component.
Think of light peak as a high speed freeway, an autobahn so to speak for a computer, the road surface is the cable, the on/off ramps are the devices, you don't identify yourself to the road, it just acts as the method of transmission, you can drive anything you like on the road, bike, car, truck, bus, horse & cart or just walk. The road doesn't care, it just allows you to move.
When data is transmitted from the device (on ramp) to the OS components (off ramp) it follows a repeatable path, so basically you have vehicles going back and forth between two points on the highway.
I would presume that the devices might need to identify themselves, I think USB devices do something like this anyway.
I don't see manufacturers having many issues with implimenting it, they will love having only one cable type, just of different lengths. Companies like Apple & Sony will be the likely leaders as they are the premium brands so the extra cost of such technology won't %% wise throw the prices off too much.
It would be interesting to see if this could be pushed further to all audio/video technology and replace HDMI and all the other connectors we have now, one cable type for all your home computer & audio/video needs is a perfect world. And on such a large scale the economies of scale would occur pretty fast on the basic cables.