I agree that something has to be wrong with that picture. It looks like the fish can't even turn around in the tank as if it is as thin as an iPod. Also, this device is not meant to be carried around like the iPod, it is a speaker system meant to be set on a desk or table.
While I don't think the iPond is necessarily the ideal tank for a betta, take a look at a lot of the stores that sell bettas and the iPond doesn't look so bad. I often see bettas in filthy little cups at stores - disgusting and who knows how long they sit there like that. In fact, when I recently got a fishtank, I found that many stores, such as some of the big box pet stores don't have the greatest fish care either. And don't even get me started on the fish Wal-Mart was selling. Wal-Mart should NOT sell fish or other live creatures.