Who decided to waste research money on that?
On the contrary, I think it could sell well with the consumer crowd. Even at my "ripe old age" of 33, when my friends and I hang out, someone busts out the pocket camera and does the "take a snapshot of me and my friends" arm-reach maneuver. Having an LCD on the front would help them get better snapshots.
This thing isn't for the enthusiast or professional crowd. It's for taking better social gathering snaps. Just look at the other features: face selection, red-eye removal, blemish removal...
I'm not buying it, and I don't expect that anyone hanging out here would, but that doesn't make it a bad idea.