OLO Subnotebook Runs On iPhone Platform

I know this sounds crazy but OLO is working on an iPhone-powered subnotebook. No idea on how they are going to pull it off, but here are a couple of suggestions – the iPhone’s innards are what drives the subnotebook, making this nothing more than the Apple equivalent of the Redfly (or the failed Palm Foleo). Another explanation could be the iPhone augmenting a full laptop setup, functioning as an input and application source. What do you think?