In a world where everyone seems to fancy themselves a guitar hero, something like this makes perfect sense. If some people will go so far as to carry a Fender "Stacked Amp Wallet," for instance, it's certainly not a stretch to think they'll go for an MP3 speaker that looks like an amp as well.
The "Mytunes MP3 Amp" actually has some impressive details considering its diminutive size, including working bass and treble dials. It even has a faux leather casing and corner protectors to minimize damage in mid-slash.
The 5-watt speaker will work with the iPod or any other MP3 player, according to Slippery Brick, though it can be plugged into a PC through its USB connection as well--just in case you're too embarrassed to be seen in public with it.