Isn't this like having a remote control for a car cd player, or having a chip clip for a self sealing bag....useless.
Ok, so rolling with those analogies:
#1. On a roadtrip, people in the backseat might want to control what songs to play, the driver throws them the remote.
#2. The self sealing bag gets a tear in it (which seems to happen to me A LOT). Also, bags don't come with the chip clip. But the question isn't whether you use the chip clip with a self sealing bag, it's whether or not the chip clip has a market.
I would say anything you can imagine has a market. It's a matter of identifying the market, pricing it for the market and presentation to the market.... Also known as "marketing"..
If the world would have listened to the 'slashdot' crowd, the ipod would have never had a chance in hell. It was too expensive and only exclusively for the mac users. I think there was a whole entire list of other reasons why it was going to fail.
Do i think this stylist will be wildly successful? Not sure... But the clearest use for this tool is for drawing chinese oriental characters not as a drawing tool. Typing on the virtual keyboard with two thumbs works fine.... But I can imagine getting annoyed drawing such large strokes with your finger all the time. Using a stylist for drawing characters would be much faster and much more precise. Think about how much your fingers actually move when writing with a pencil. To do the same thing with your finger your finger has to move a whole heck of a lot more.
I wouldn't think of it out of the realm of possibilities that Apple actually comes out with a stylist for chinese writing. When steve said 'no need for an external stylist any more, we all have have one.' he was referring to the speed and accuracy navigating and typing typing with two thumbs in the english language. The chinese character drawing is a completely new avenue that wasn't initially introduced.