i saw one that worked with an android phone, the card was like holding private keys, communicated with the phone to prompt the user & sign the TX, seem pretty secure way of spending coin on your phone, I wouldn't get rid of the paper wallet just yet, but it sure can beef up security for the spending wallet.
Doesn't really offer too much over a good password protected phone based wallet in that case though. It has its place but it's kind-of between two camps.
The design I was thinking of would have been a Trezor type USB device but with the wallet stored on a smartcard like this wallet kinda is. This would allow multiple wallets and an additional level of security. It's good to see several types of device out there though.