Is Twitter a good idea? In theory, yes. I can see how getting small snippet updates could be interesting and I've seen it used in a few interesting ways - One guy twitter'd a few key talking points from Sarah Palin's recent speech in Hong Kong which was a good read. There's also been a few oopsies such as Jonathan Ross accidentally announcing Fable 3 and that other guy accidentally announcing inFamous 2. Companies and organisations can use it to post update information on products or meetings or whatever.
Then again, I feel it gets overused but so do things like Facebook. A person's status doesn't actually change every five minutes unless you have one hell of a rollercoaster ride for a life and most of the time no one cares what you do during the day. It's nothing they couldn't ask you about later in the evening face to face or by phone. Or if they're far away and abroad, Skype.
I feel Twitter doesn't get used to its full 'potential', or gets overused, by much of the general public. The follower rankings become little more than circle jerk fests and it turns into a MySpace/Facebook issue again. And we already
have MySpace and Facebook.
Obligatory pictures: