Another possibility is to turn on the loudspeaker when the keyboard is open and turn off when the keyboard is closed (like in E90 for instance).

I think I like this option the best, in that way you're in total control and you won't have to worry about moving the phone while in loudspeaker mode, I would love this option!

so, who do we commission to do this??

It'll be picked up and worked on. It's only a bunch of lines to do in a shell script, simply needs to be written and daemonized.

Gets the impression that there are still to come gazillions of ideas involving the PS. Thank god it's there.
These ideas here I like!

You could also add automatic call answering. When the phone is ringing and you hold it to your ear, the call could be answered automatically without needing to touch the answer button. Probably would need a little tweak to check PS status when the call arrives, so you don't answer the call with the phone in your pocket.

Ok, this may interfere with the automatic called rejection by flipping the phone over (covering the PS), but I would vote for automatic answering instead of rejection simply because I am used to answer calls when available and switch-off the phone when I do not want to be disturbed.

Brilliant idea! Speaker turned off by being close to the proximity sensor!

@Tomster: With the phone in your pocket, the proximity sensor would automatically answer all calls ((

would it??

what if we only activate the daemon once the speaker has been activated??

@Starman: No the first idea is valid, about turning off the speaker. What I meant was the second idea of "answering calls" when phone is put near your ears. Two problems:

1- If phone is in pocket, proximity sensor would thus be automatically activated.
2- Practically speaking, it would be uncomfortable to put a vibrating loudly ringing device close to your phone enough until answering is activated.

Just my thoughts.

What I wanted to say was that the logic needs to be a bit more tweaked than plainly: PS covered when ringing = answer the call.
There'd be more logical steps (PS status) to check before automatic answering would work as expected.

1. Phone in pocket = PS covered when call arrives = don't answer automatically
2. Phone out of pocket = PS uncovered
3. Phone to ear = PS covered = answer call

BTW denying the call would probably work with the accelerometer, not with the proximity sensor, so I guess no interference.

Ahh, and in my case there is no annoying crazy-frog-ringtone that could damage my ear-dums ;-)

i like the input this simple idea has generated, it would be a legen-wait for it incase your lactose intolerant- dairy feature