I have admit to having something of the same sort of reaction... I think people were really stoked for the in the standard desktop version, so when it starts to broaden beyond that... a cell phone? You've got to expect more then a few WTF reactions. I think the expectation was that the Mega65 would be more focused on the C65 reproduce aspect, rather then appearing to be another generic FPGA box.
Honestly, I can't see the usefulness of a CD drive at this point in time, never mind a novelty phone.