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The only real practical application I could see would be a arrangement of touchscreen panels that run the same concept. Optimally probably the size your hand.
Small tiles would just become annoying, It'd be like having a separate mp3 player for every mp3 you own.
Go to the Siftables website and watch the TED video on these things. It is a presentation from the TED conference (it is also available on the TED website) and I think the potential uses for these things, especially in early education become much more clear and obvious. The music bit at the end is really impressive.
Autoshare makes certain YouTube activities public on the services you choose. Select only the services you are comfortable with - like Facebook, Twitter, or Google Reader - to let your friends know what you like on YouTube. You can turn Autoshare off at any time.
Small tiles would just become annoying, It'd be like having a separate mp3 player for every mp3 you own.