I'll admit that I don't get the point of this LG design. They basically just dropped an iPhone / LG Prada into a weird keyboard dock. The screen would be tiny, and I'm guessing a lot of folks would miss tactile feedback on a desktop or laptop-sized keyboard much more than they would on a mobile.
The Mashup that I'd want to see of the iPhone and Palm Foleo would be thus:
Flip-open screen, like the Foleo. Standard keyboard but with iPhone as the Mousepad / Trackpad. Just a little slot where it slides in, some sort of dock. That would be awesome, and it raises a lot of interesting UI possibilities.