The idea is not flawed, they just messed it up
The idea of running phone/tablet software on a desktop, or running a desktop OS on a tablet, etc. is not fundamentally flawed.
I use the iOS Simulator on my desktop for app development and it works well. Multitouch gestures are not easy to do but those are in the minority. It would be very convenient to be able to run certain apps from my phone on my desktop. I can only assume this will be Apple's strategy at SOME point.
The problem is running this stuff full-screen by default. The idea to throw out the biggest revolution in computer UI (windows) was... not smart.