Pekkis: that sounds a bit like Opera's apps on the desktop browser. Was it actually an apache browser open on the device, or a client app on the phone which checked in with the server and responded to requests routed from there?

This app appears to be a true server--listening for http requests and responding to them. There are lots of reasons why you wouldn't want to do this full-time on a phone: among them battery life and the fact that the phone doesn't appear to be addressable when not on wifi and on the t-mobile network. But for a limited application like making photos (or information) available from the phone, it has some promise.