Pokemon is no doubt a huge part of Nintendo, being it's second largest IP and the second biggest gaming IP only behind Mario, it is a force to be reckoned with. In the 19 years it has been out it has ensured Nintendo's dominance on the handheld front, so now Nintendo and GameFreak are banking on Pokemon to push them forward on smart phones. From what was shown and what was said it appears you'll find Pokemon while outside and be able to battle and catch them and then be able to trade them with friends/possibly battle friends.

I see Nintendo pushing out commercials like the one shown at the conference for this app because of one thing and one thing only. The Pokemon Go Plus that they also showed along with it. Based on how it looks it will probably range anywhere from $5-20 USD. This is where the big money will go... 

Big Unowns:

-Will you get a starter Pokemon or will you be expected to go out and find your first Pokemon on your own?

-How many Pokeballs will you recieve and how will you earn them? Obviously they aren't unlimited and Nintendo could definitely charge for a set amount/have in-game currency for the Pokeballs

-How will battles work/how will they function against other players? Will they play much like their handheld counterparts or be slightly toned down for broadened appeal?

-If you lose a battle do you have to wait a set amount of time before your Pokemon revive or could you pay/use in-game currency to revive them early?

-Will there be Pokemon exclusive to certain locations (ex. a water type thats only found in/near the Pacific Ocean) and if so is there a way for a person living in a (for sake of example, France) different location to obtain them through a trading network similar to the Global Trade Station in the main series games?

-Will shiny Pokemon exist?

-Will Pokemon be released in sets? For example will the first 151 be released and then after a month they release Gen 2 and so forth? (This could potentially increase the interest of the game for months)

-How will legendary Pokemon be distributed?

Most of all, will this be a fad or something much bigger? I feel like if Nintendo plays their cards right they may have found themselves something very special and could be making tons of money for a long time over this XD

But I'd like to hear your thoughts or other potential possibilities for this game! 

This'll be HUUUUUUUGE in Japan.
It could be pretty big here too, but mobile gaming isn't as big as it is over there.
As long as Nintendo keeps it like this: Cool spin offs for mobile, and the mainline games for their own hardware, for all their franchises.
They could have a second vault of endless cash labeled "Mobile", to swim in, next to the first one labeled, "Wii/DS".
We'll just have to wait and see how they approach this.

Honestly I think the mobile style of the game with waiting and IAP will annoy a lot of mainline Pokemon fans.
In saying that mobile games can be huge, the only games I see advertised ever are Boom Beach, Clash of Clans, Candy Crush and Empire: Four Kingdoms so they must be doing something right.
After seeing what that Google Maps Pokemon thing did I can definitely see this rising to the top of the app stores for a long time. Carrying a 3DS around to play Pokemon can be embarrassing for a lot of teens/adults. Playing a game on your phone isnt.
Oh and lets not forget its Pokemon, that iconic name will do a lot to push this ahead of the crowd on mobile which will then give it more exposure.

No doubt it'll piss off a lot of mainline fans. But it'll give the series more exposure again. This, like you said, if marketed right could be the biggest thing on the app store. This is a huge project for Nintendo, I don't think this will be a simple cash crab. 

Looking at the expensive commercial they made.. Have they ever spend this much money on a commercial.. Its gonna be huge! I could be connected to those 16 year old girls again.. "Do you wanna see my PokeMon"..

But some kid will fall down a river trying to catch a Pokemon and they'll pull the app...

It has a strong and popular brand name going for it. The only unknown is whether the game has the addictive nature of other successful mobile games

Yeah, we have still yet to see real gameplay. 

I'm hoping they add something similar to Pokemon Amie in this too. I feel like the masses would like that

Yeah, they're treading on dangerous waters here. What I think they may do is purposely gimp the app to be a Gen behind the main series to keep the series strong on handhelds.

We should create a team rocket group and snatch all the Pokemon and if a kid wanna trade we'll ask for real money!

It will be Massive regardless of the functionalities. BUT, if Google Glass is compatible, Oh Boy...