The patent is for *portable* gadget use, not desktop computer use, or kiosk use, or ATM use.
Of course, Palm organizers and PocketPCs were doing exactly what they described a long time before, but maybe the lawyers reviewing the application thought putting a computer interface on a non-computer device was actually non-obvious.
Interresting that Apple actually cited that patent in one of their own applications, though.
(Then again, Apple has tried to pattent other companies's inventions before; Synaptics' touch pad tech, for one...)
Just on that alone I'll give them a 1% chance of actually having a case.