Yeah. Bluetooth is/was supposed to be used for a Wireless Personal Area Network. So your cellphone, laptop, headset, PDA, GPS etc... would just be connected together without you needing any cables. At the moment it's still a vague promise since everybody has decided to implement the standard in their own way and with their own extensions.
If it does actually all get sorted out then it's a pretty cool idea. But we'll have to see. My old Ericsson R520m worked perfectly via Bluetooth. I would just need to be near my computer and it would resync everything. My new Nokia 7650 however is a pain to use with Bluetooth as I have to manually initiate the connection.
The main issue I've got with Bluetooth is that I'm just not too keen on the idea of yet another set of transmitters held up to my body. We've got two sets of studies which say that RF does and doesn't harm body tissues.

Can't quite find the Bluetooth whitepaper which detailed what they originally designed it for but this page mentions the main bits.

- Trevor