Media which lives on a computer can be moved to a variety of mobile devices by dragging and dropping the files to a desktop folder which then drops copies on theexternaldevice over the web.
First they were trying to gain room inside the iPhone 4 so that they could make it thinner and have a larger battery, and secondly, they were trying to get the antenna(s) outside of thedevice, just as you would by using an external antenna sticking out the top of thedevice.