The latest smartphones--iPhone being the prime example--are very, very nice devices. As has been observed elsewhere, they handheld computers with voice calling grafted on. Which means they are too expensive and delicate to take just anywhere. Which is where the concept of SIM-switching comes to play.
Cell phones have been around long enough that many of us have old phones from previous contracts. And while those old phones may not be web-surfing, app-running wonders, they do tend to do voice calls perfectly well. In fact, I believe that my current, soon-to-be-replaced phone is probably the smallest phone I will ever have.
So if I am traveling somewhere rugged (biking, camping, canoeing, maybe even going to the local swimming pool), I might not want to expose my wondrous new smartphone to the elements. Why not press my old, backup phone into service? Well the way things stand now, switching the SIM card is just tedious enough that I probably wouldn't bother for anything less than a weekend trip. But if they could just make the SIM cards easy to pop in and out, like a well-placed microSD card, then it would be much more realistic to accessorize your mobile device to your activity.
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