If a faulty ethernet driver lets you compromise a laptop just by plugging it into a malicious network, that's a legitimate vulnerability, not really a case of "well, they had physical access".
USB may be customarily treated as more trusted than ethernet, but there are clearly still scenarios where untrusted people may be able to send you USB messages.
I wouldn't consider that unfortunate. Responsible disclosure should be praised!
In this case the problem is that the dock is expected to be a safe interface (untrusted), when it actually isn't. For ex, people would be surprised if their computer could be hacked by plugging it into a malicious power socket. And likewise they'll be surprised if they find out their phone can be hacked by putting it on an alarm-clock ipod dock in their hotel room.
Eventually, both Sony and the hackers kind of lost interest, I think -- I haven't kept up with things, TBH. That said, Sony had the PS Vita to move to, but I don't see the iPhone changing significantly in the next few years (risky words, I know, but I'll be happy if proven wrong).
