A 16 megapixel, 10x optical zoom lens, especially one with a 1/2.3" sensor, will always outperform any digital zoom lens with a tiny sensor to fit within a smart phone, including Nokia's 808 Pureview with its 41 megapixels and 4x digital zoom. At $350, it's still in the ballpark of Nikon's regular, compact cameras.
With a built-in WiFi, you could have your photos uploaded and sync'd through various platforms, including Dropbox and Google's Picasa Web. Aside from the quality of photos you'll get, this is the second biggest benefit, in my opinion -- no more fumbling and looking for cords, and attaching to your computer.
I don't think this is a device that I would buy, though, because I've already invested in Nikon's SLR ecosystem with a lot of lenses, and I've already got the other end covered with my GS-II phone.
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