It is certainly a cool idea. The amount of useful and effective applications in iphone could surprise anyone. I guess they might be now working on a lot on cool applications now in order to make it more competitive.
Well do u mean the iphone flash light facility or what?if that is the case then although the iPhone's camera doesn't
possess a LED flash, the main screen is itself quite bright, especially
so when all the pixels are set to a nice bright colour. In
this case you can drag left to switch between white, red, green and
blue, though (obviously) the white version's the brightest.