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Looking at the technical aspect of this there might be some possibilities using the Intel Atom CPU which supports clock-frequencies of 800Mhz-1.87GHz. The current CPU in the iPhone is an ARM 1176 620@412 MHz. If the iPhone were to use the Atom CPU it could run at a slower clock-rate in "phone-mode" and faster in "computer-mode". As far as the graphics goes this might be a more valid concern, I've some doubts that the PowerVR GPU would be able to handle the 1920x1200 pxls of an Apple Cinema Display.
So please Apple and Mr. Santa Jobs get to work. I bet this would tingle more people than me!
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