will it just be a data pull read only or will we be able to interact with the game i.e. buy stuff out of the AH, talk in LS, invite new people to the ls, craft etc.

I think they should only make it possible to do interaction if you log out in your residence. Then the content could be like a small room 2d that lets you do the same mini games in the current game on a hand held like crafting provided your mats are in your inventory already, or you switch over to the AH app and buy some more. God that would be awsome. I might actually not hate crafting if i could do it on the bus, at work, at a wedding mahaha.