Review of Bug Labs' launch

It looks like the folks over at Bug Labs have finally announced pricing, and it has been received with a giant thud. For the unfamiliar, Bug Labs is a startup based out of NY with a vision for making modular consumer electronics devices. On paper, this idea sounds great. If you look at most consumer products on the market today, most tend to consist of 4 main components:

1. A screen
2. An input device (buttons, switches)
3. A power supply
4. A functional component (GPS, MP3 decoder, Wifi, Cell phone, etc.)
   

If you can standardize the first 3 components, the 4th is effectively the primary differentiator of a consumer electronics device, and why not make it modular enough to plug-and-play and upgrade over time? The vision for consumers may be a modular device that they can build from components as they desire.