Yes, and I am currently working on GAGA-2: http://blog.jgc.org/2012/01/gaga-2.html, http://blog.jgc.org/2012/01/gaga-2-distance-rtty-test.html, http://blog.jgc.org/2012/01/gaga-2-mounting-flight-computer.... The vague plan is that GAGA-2 will be all about lots of cameras pointing in all directions. GAGA-3 will be about precision landing probably using a guided parafoil.

None of this is about orbit. Orbit == high velocity and altitude. Although high-altitude balloons regularly go about 40km that's still in the stratosphere and nowhere near space and the velocity is nowhere near what's needed.

These phone-based cubesats are a good idea. There have been plenty of phone-based balloon flights and there's no reason not to use them in satellites if you have some way of recognizing failure because of cosmic rays.