TouchFire is a really new idea, that in many ways flies in the face of conventional wisdom. I've actually spent most of career doing software. When I first came up with the idea, I thought it was pretty crazy too, for many of the reasons people are trashing it here.
What's so non-intuitive is that TouchFire works. And it works really well. It lets you touch-type on an iPad, while at the same time effectively disappearing into the iPad's cover when you don't need it.
We have found that actually using it is a very different experience than watching a video of it. Would people be interested in having a meet-up to try it out in person? We could do one in Seattle and one in the Bay area if there is interest...