This could be why it would be available only on the newest, 4G-enabled iPhone. If this was all handled in the cloud and delivered at 4G speeds, it could be compelling.
And you could totally see Apple pitching this to AT&T and Verizon and they're going "Crap, people already hate our data caps, and we already hate all the data iPhones use..." and then Sprint's CEO Dan Hesse comes running over to Jobs "Steve! We'd LOVE to handle that! We can do it! I swear, trust me. We have 4G! It's blazing fast...give us a shot...please?" Hands over $20.5 billion dollars...
I would be more surprised by a 4G iPhone 5 than a virtual personal assistant. I just can't see Apple shipping a phone that only lasts 4 or 5 hours with 4G on.