I have my home network (such as it is: two computers, a printer, an internet phone, a cable modem, a router w/wi-fi, and a second router rebroadcasting the wi-fi signal from the first router) and it is all set up and functioning properly.
I haven't a clue how it works or why. For the initial setup I followed comic-book-like instructions ("Connect an Ethernet wire from the cable modem to the "HOME" port on the OOMA...", with accompanying line drawings), and Mark Lord set up and pre-configured my repeater router (WRT54g) for me and mailed it to me from Canada.
Why the repeater? Because there is so much steel in this over-built house that my primary router wi-fi signal cannot penetrate the floor to my downstairs neighbor's computer 10 feet away. The signal has to go out my window to the repeater on her deck, then from the repeater through her window to reach her computer. She gets internet and telephone access that way.
From personal experience I can attest to your idea that a device such as you propose would be useful. If I weren't already set up, I'd be standing first in line to buy such a device, and wouldn't even blink at $100 per box.
tanstaafl.
_________________________
"There Ain't No Such Thing As A Free Lunch"