Despite being really cool, we don't see a whole lot of practical use for this Xip3 Jacket/Backpack/Pillow device. Sure, you can turn your jacket into a backpack in 43 easy steps (seriously, watch the video, it's ridiculous), and then into a pillow in another 10. But the problem comes from the fact that you can only have one out of three at once.
I think we'll go with the idea of having a separate jacket, a backpack and a pillow. You can put your pillow inside the backpack, which can also fit your jacket if it's warm. Come to think of it, our jacket turns into a pillow in one single step already. Step 1: Bunch up jacket.