Their plans look surprisingly like a Motorola Atrix! It runs Android normally but also has an old Ubuntu ARM system on it which it runs when docked. Having said this, it needed a severe amount of hacking around and rooting to get it to a usable state and to fix the repositories and broken dependencies and horrible window manager. I have one and its dock plugged into the TV. I also have the Lapdock. It isn't a massively powerful phone but alright for compiling this and that, word processing and SSHing to more powerful machines. Sadly, Motorola have announced that they will make no more of this type of phone as it wasn't overly popular (and the Lapdock and accessories were stupidly expensive)

So, with the Ubuntu phone I can see this being popular with a few geeks but not with the mass market. If they stop making Unity behave like it is on a tablet when it is really on a PC, that'd be great. That is one good thing that could come from this, right?