This is crazy. It delivers music over wi-fi using a dedicated network? Forget connecting to Pandora, etc., even the default music player on an iPhone could be handicapped if it is relying on iTunes in the cloud. And one could not use any internet-reliant apps (including safari) while playing music. Unless you feel like using your cellular data connection.
Shame on the NYT (where I first heard about this) for not calling out the severe shortcomings of this device.