For me the original fascination with this camera was it’s odd appearance. It’s a 4.5″ x 1.5″ cuboid. The company’s selling point was that it could refocus on any part of the photo you took after the photo was taken.
Through a little research it became clear that this camera wouldn’t offer very much to appeal to a broad audience, and it certainly wouldn’t appeal to photographers. For starters it offers really low resolution and you wouldn’t be able to print a photo any bigger than a postcard. Additionally the screen is so tiny that you can’t really see what you’re photographing to being with. Another big problem is it’s price tag, coming in at around $400 dollars.
In one article I read here, Steve Jobs himself was interested in investing in the company. It would have been interesting to see what he may have been able to with this product and original concept. For now, it’s kind of just a novelty with a slick design. 
I have a Lytro camera for a few months now. It is interesting, but somewhat limited. I have been using it less than I thought I would, but I did enjoy to spend a day taking pictures of insects and flowers in a botanical garden in the neighbor State. The perspective shift is quite interesting. The camera has wifi connection built in, which allows an iPhone to pull the pictures and post them while you are on the go. I am awaiting some remote shooting option to be implemented. That would be awesome!
With regard to Steve Jobs, what I read was that he had plans to have the refocus setup available in some future version of the iPhone. I do not remember where I read that though, maybe it was in the Lytro forums.