That's a good point. However, I wonder if users might start feeling as if the bump is pointless and they just want to transfer the data right away, but get frustrated that they have to bump the phones and they aren't sure why.
It's a logical action for the result.
I do think it's funny that it requires a net connection and geo-data, though. Very clever on their part to become middleman and privy to all this data. Where's the version that runs over wifi or bluetooth?
most mobile wlan chipsets (including the iphone's) don't support adhoc (so would need router) and bluetooth sucks, it is inconsistent and unreliable (even between identical phones).