If the (i)Pawn app really works as demonstrated, it might be a great way to play board games on your iPhone in the future. Similar to an iPhone stylus, the (i)Pawn pieces can interact with the touchscreen, giving you a more immersive experience while playing a game with your iPhone. Like, say candyland, or chutes and ladders.
It could be just a clever ruse, but even if it is, this is a great concept. Pretty cool.