I think it depends how much it costs. I like the idea of being able to send photos to it remotely, eg send a picture to be there when the wife gets home before you or something cheesy like that :P
The size and resolution sound highly unimpressive to me though.
Mm, if I want sound, I'll use my hifi if I want to watch films, I'll use my tv. Not a little photo frame.
It would be nice to have a photo frame that you can change really easily, but it will just use up batteries or electricity and you'll barely look at it, so I think its a waste.
A nice show of technology though, and it can only get better.