In school, we had a group that did microgravity experiments in freefall, could be useful research applications along those lines. Although I'm not sure how much control you have over the physical satellite.
Perhaps you could do some LEO photography? I'm thinking, if this is possible, there could be some interesting mapping applications.
Give people the possibility of such small satellites, and they will find interesting applications, whatever they might be. Most probably something nobody has thought about before? Never underestimate the crowd :-)
I can imagine an increase in academic picosat projects, with these kind of prices ...
