Is it going to be at least 3G capable? Of course.
Is it going to have Wi-Fi? Of course.
Will it have Bluetooth? Of course.
I doubt that in the lab situation they'd have active SIM cards inside the devices unless they were actually testing that functionality at any given time, so the "No Service" thing can be laid to rest there.
I've never understood the tethering thing myself, and since this device will at the bare minimum be a 3G-capable one, that pretty much covers it. As for actual phone use, who knows. But I'll bet that with the introduction and with whoever is the data provider for the device, we'll see an entirely new line of data plans for 'em.
No one knows where this picture was taken. If taken from an Apple lab then it's very possible and likely they don't get any reception there for a multitude of reasons.