Wikipedia reminds me that the iPhone was announced by Steve Jobs in January 2007, and was first sold in June of that year. Best I can tell, this may have been the same stretch of time SuttonBeresCuller were building the pPod. The name, "pPod," references the iPod, of course, and the iPod has of course been around forever. But make no mistake: the pPod prefigures nothing less than the runaway iPhone, and is its dimensional antithesis.
Here's a picture of the iPhone displaying the Earth inside. The metaphor is obvious: a world may be explored within; the world may be accessed through it. The iPhone is the ultimate networked appliance, a portal to everything, and it fits in your hand.
The pPod by contrast promises to put you in the middle of the machine. Literally, physically. You can sit inside, play movies, listen to music, and watch the world outside via cameras positioned on the pPod's four vertical surfaces. And let me emphasize that the world, from a pPod perspective, is outside. The device sits on four casters, so I guess if you want to see new places, you can move it (though it doesn't look like you would be able to navigate it from within). (The images below are from the SuttonBeresCuller site).

When MI6 and I visited Lawrimore Project Thursday night last, the pPod was resident in the gallery's video space and was playing 60s lounge music as the three video screens featured animation of a dancing pPod. Scott Lawrimore showed us where the pPod's cameras are mounted; the feed to the video screens can be switched to show what the cameras can pick up. Although the window is transparent from the outside looking in, apparently, from what Scott told us, from the inside, it acts as a mirror. (The gallery is otherwise filled with newer work by SuttonBeresCuller; a great review by Jen Graves will make you want to go see the show for the new work, as much as to experience the pPod.)

Come to think of it, the iPhone's single camera is also quietly embedded, almost flush with the smooth surface of the device. Here is a shot of the back sides of an iPhone 3G and iPhone 3GS. Notice not only the cameras, but how the laminate surface of these later-model iPhones mimic the smooth surface of the pPod. (This image is by gillyberlin and is used under a Creative Commons Attribution 2.0 License.)