From the founders comment (in the comment section):

"...Sometimes people are curious about those around them but it's socially unacceptable to just go up and chat. So those meetings never really happen."

I can't think of an instance where it's more socially acceptable to poke at a phone keyboard than to talk with a human being face to face. Maybe in a movie theater? Maybe at 24 I'm already ridiculously too old to understand the greatness of texting/chatting but ... it's pretty rude?

From the homepage:

  Concerts and Sporting events : 
    Shouldn't you be enjoying the event with the people you went with?

  School : 
    Students should be learning not chatting. 
    It's also rude and disrespectful to the teacher.

  Mall:
    I guess this is valid for tweens or something.
    If I was a virtual-chatty-cathy,
    I would be more comfortable at home than with people on the run at the mall.

  Airport :
    Lot's of time to kill okay this is valid! (though still sad) =(

I am really trying to understand this product but at the moment, as others have stated, this is pretty sad.