That's pretty cool. It reminds me of Iphantom. I still have one. But think about this for a second. If all of the traffic on your computer is mechanically forced through Tor first, then just think what it would be like to fire up a VPN. Can you imagine a VPN provider seeing a connection coming to them directly from inside the Tor network? They'd be like WTF? haha...
What about the data security concerns of sending your online banking/paypal or other sensative online account login details through a proxy. I've heard of many cases of people using a public proxy, and forgetting to turn it off and then having their paypal hacked soon after.
Caspian, does your iphantom still work? I had 2 units until yesterday when they both stopped working at the same time. When I contacted a tech at Phantom Technologies, he did not seem surprised and did not offer any troubleshooting, only a refund. He also said that they stopped supporting it. I'm just curious if they both really failed or they cut them off. It was a great product and I really can't find another hardware appliance like it.