IPhone Car Navigation - The Death of your PND
The future is Bluetooth 3.0 or Wireless USB. At the base level, a standard car radio could interface with a mobile device to add features, like the screen, mp3s and gps. At the high end, carputers like we're seeing now, with large screens and full compliments of tuners, gps, etc. could exchange data with a mobile device. The apps on your carputer could either interface to sync with you mobile device so you could do things like browse your contacts list and make a hands free call, or upload your gps path so you can go for a walk, find that resturant you passed a few blocks back, and find your car when you're finished. Or maybe just use it to give a presentation to your boss while you drive him out to lunch. And like you said in the video, using the apps on the mobile device isn't out of the question, either.
Add a G3/G4 phone module into the car and you'll have a hand-held LoJack tracker. Let's not forget all the little stuff, too, like remote entry and remote start-- although that might be better suited to bluetooth/wgps or a 900Mhz/2.5Ghz band technology.
Of course all this would depend on open devices and open standards, but with Apple's latest legal action, I don't see it happening any time soon.