I totally do see a use for it. It's just a unnecessary gadget with no real gotta-have functionality as far as I'm concerned. iPod is a different story. I'm on my second iPod. I just got a new iPod Touch because the headphone jack on my old one crapped out. Although not necessary, the wireless connectivity in the new iPods is a nice feature for folks like me. I only use my pay-as-you-go cell phone about twice per year, so I sure can't justify $500-$1200+ per year for cell phone service.
If Apple or the Blackberry or Droid folks would get smart and offer reasonable cell service plans for folks who don't eat, breath and sleep with a cell phone hanging out of their ear, I would happily cough up the full price for one of their phones. But I'll be damnd if I will pay $500 a year for a service that I would only use for a few minutes, once or twice a year.