Classmates.com was sued in 2008 for sending emails claiming former classmates were searching for you. Similar, but Classmates.com was actually requiring a paid subscription before telling you there wasn't actually anyone on the other end.
The "Done" button is a toggle? Is that a side effect of this being a proof of concept, or was there some extra functionality in mind?
Edit:
Answering my own question, since it looks like this was designed for touch/pen based input, it would probably hide the keyboard: http://www.crockford.com/wrrrld/keyboard.html
I don't think they've ever had a worldwide outage like this.