I would use that - it would be nice to quickly check the time, see if you have mails, check battery percentage, see the song title of the current playing song, etc. With four shoulder buttons and a volume wheel, there's quite a lot you could do with such a small screen.
Only problem would be that it would likely make the lid thicker, add some cost, make the device more fragile, decrease battery life, and require custom software to make it usable in an interesting way. Maybe in some other place than the back of the lid?