Coverflow isn't my favourite feature of OS X, but I have to admit it is neat, but that's about it. There are more efficient ways to organise pretty much any data you can think of, but this idea of applying the technology to your iPhone's Contacts list intrigues me. Nothing fancy here, it would likely be a piece of cake for Apple to throw together, and I'm a little mystified as to why it hasn't yet. It wouldn't be the first time photo browsing for contacts has been used, but it would be the coolest. And yes, I really have Kevin Rose's contact info on my iPhone, and no, he doesn't know about it.
AU: Kudos to Jason over at TechAU for the concept - nice work mate