Not just phones. Leave the 3G/4G or other radio chipsets out, and you've got a (hopefully cut price) Android powered iPod.
Maybe there could be options for D pads and button modules? Screen in the middle, D pad on left, buttons on right, instant handheld games console. Swap the D pad and buttons around if you're southpaw (or just like it that way).
Bloody big camera lense on back, screen on front, sack everything else off asides an SD card module, and you have yourself a "smart" camera.
This could really be an awesome development.