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I see the UMPC being a much bigger threat to the Tablet PC's than it is to PPC's. There is not a whole lot differentiating a UMPC from a Tablet with an 8" screen, and the UMPC will probably be cheaper.
If you travel a lot I could see a UMPC being a more desireable device than a full laptop. It's a lot lighter and would probably be easier to use in a cramp airline seat. With a folding keyboard and a mouse you could use it like a laptop. You could run PowerPoint presentations off of it, and it would do most all the other normal PC things. The hard drive would be plenty big enough to store a few movies, music, and backup the flash cards in your digicam.
I could see the "room PC" idea going somewhere. A UMPC and a WiFi link could let the device replace the morning paper at breakfast. It's light enough to use if you want to poke around online from your favorite easy chair or outside (granted the screen can hold up to daylight) or wherever.
I guess we'll see.
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