I agree. It's fun to play with at first, but besides looking cool, it doesn't help with navigation at all. I would be interested to know if they are seeing a drop off in traffic yet. Besides, they'll likely get smacked down hard for scraping content. They did a great job getting press for launch (I wonder how much they paid Scoble?) but I can't see them returning that $10 million unless someone acquires them.

It's VERY hard for even a paid iPhone app to make enough money to justify a large enough sale for people who invested $8m into a company to give the go ahead. Maybe impossible. A free iPad app is orders of magnitude away from that.