It makes looking at the weather easier. Rather then launch an app and wait for it to update I have the weather widget (on my atrix) set to update whenever I unlock the screen...it isn't constantly updating and using resources but does provide me up to the minute accurate information, and more importantly tornado/severe weather warning information (I live in tornado alley..but too far from our tornado siren to hear it...so my phone tells me when I should pay attention)
I really wish IOS would embrace widgets...having both an iphone and now android phone I love them. Sports and news widgets rock because I don't have to launch an app to get information i want to see quickly (EX: sports scores or breaking news) all I have to do is unlock my phone
I know some people won't appreciate or use them but atleast give us the option to use them if we want (without jailbreaking)
I can see some of your points in where something like this might be useful. Although i'm sorry to say that your phone will not tell you when a tornado siren is going off in your area, only when there is a watch or warning. When the sirens go off(I use to live in tornado alley) it's already on the ground. It's a last second effort to warn any one near it, that there is imminent danger.
I will say that in this circumstance is where we really see the need for a major iOS notifications update. When it comes to weather that is severe my iPhone will beep and notify me. It puts a badge icon on the weather app(TWC). If I didn't keep that app on my first screen it could easily go unanswered and you may miss that important information. Where on Android it's in the notification bar.
It doesn't show a need for widgets, it shows a need for notification improvement in iOS.
There is a app that allows you(jailbroken) to display info that you want on the lock screen and hide it when you need to with a simple gesture. This should be embraced by Apple in iOS 5.
Gestures are the key to making lock screen information work, IMO. This is how i see it working. Just my take on the whole subject. If the lock screen worked sorta like Android where you had screens, lets say 5 that you could cycle through with a simple swipe left or right and you could configure these display the information that you choose, for me it would be a calendar on one, and countdown until next meeting on another, my mail, my messages. These act as a revolving door(gotta have Apple style). Giving you the up to date information you desire. When you're on one of these screens, lets say mail, and you would like to answer that email a simple pinch to zoom gesture would take you to the mail app. After you're done a simple 3 finger pinch to zoom gesture would return you to the lock screen. I see this being really beneficial and efficient. There is no need for widgets. The lock screen is where I want my information.
Then there is the point about security. If you have info on your lock screen then how do you protect your info in case of a lost or stollen device. Simple, a gesture that you can set in settings that unlocks your device. I'm not talking about the primitive way Android goes about it but more along the lines or the Dolphin browser for Android that allows you to use the screen and make your own gesture to either page back, page forward, new bookmark, etc. That's a brief summary on the way I would like to see iOS5 handle this.