Here's an article today from TechCrunch also complaining about the notification system, and showing a nice solution.
I hope Apple does something similar if not the same to this system.
http://techcrunch.com/2011/03/07/iphone-notification-system/
Bad idea,
The beauty of Android notifications is that the pull down notification bar is visible in almost all applications, so wherever you are, you can just pull down the menu and switch to the notifying application.
Imagine you're driving and using a GPS app, a notification appears but you are busy so after 5 seconds it vanishes, Hickman's method requires you push "Home" button, go back to the springboard and slide probably several pages to check notifications, with Android you can just pull down the status bar while being in the GSP application and either read the notification or directly switch to the notifying application without having to go to the homescreen.
Android notification is much better, in fact it's the best notification implementation and the feature I like the most about Android.