You are correct. Also from the video they said it was built on "myspin" and only apps that are compatible with "myspin" will work. Unfortunately, I'm sure that's going to greatly limit the smartphone apps users will be able to use.
You can read about myspin here. Looks like there are 46 compatible apps
http://www.bosch-softtec.com/myspin.html
I guess I see two benefits.
Your phone is tucked away somewhere rather than being out in the elements.
You can navigate to different apps while riding
Not sure those benefits are worth the $?