This is just an example of the vortex that is the cellphone. They are sucking up every other mobile electronic gadget and intergrating them.
This is obviously a go at the Ipod market, and when the HDD reached 5GB will be a worthy competitor. I believe it has USB already, and as Jimski said, your media data is usually not important, as its just copies from another hard drive.
Any objections to this device has already been addressed by the Ipod mini, and I would not expect it to have more failures and problems than that device. Its pricey now, but its for early adopters.
HDD in pocketpc's have a role, as long as they are confined to media storage, not data or programs, which should go into flash. That way it will only suck your battery when you intend to, when listening to music or watching a movie.
1.5G is too small, but Im sure the next generation will have 5 G. This phone just serves to show what is possible, and in a very small package.
Obviously the engineers in Korea thinks they have overcome the biggest objections to a HDD in a mobile device that needs to rugged, always available and small. Maybe they should talk to HP?