I happened to hear from Lee Caplin of Starium today. They've apparently (I'm looking at Lee's email message while typing this, but I don't wish to speak for them) abandoned plans to sell the bump-in-a-wire device. Now they're thinking of marketing a small RJ11'd cryptophone an executive would carry around. Also, Lee says Starium has filed for patents on a desk phone, answering machine and conference phone.
I understand their original reasons for the bump-in-the-wire model, but I'm glad to hear they are making a cryptophone, because I don't really want to have some other device there. I want it integrated. I'll wait to see what they come out with. Another thing that would be even more cool would be a cordless phone. I will certainly buy these things when they are shipping them, if they are somewhere in the $1000 range.