Flo TV Shown Off On The iPhone For Reasons UnknownS

I get that this Flo TV iPhone demo is just a proof of concept. That's fine! I'm just a little confused as to what the concept is.

Is it just what they're showing us? A Flo TV app, that requires some kind of accessory to tune into broadcasts? That's possible, but given how well the iPhone can stream video over 3G, it'd be a hard sell, even with Flo TV's cable-like channel selection. It would also help if said accessory wasn't larger than the actual iPhone.

Or is it to foster excitement over the idea of native Flo TV hardware support in the iPhone, like in the HTC Imagio? Because that will never, ever happen. So again, why? [Electric Pig]