I get the feeling that Windiws Mobile will in 5 or so years time be starting to move towards being a phone OS, with the main Windows OS moving down as low as today's PDA size devices. Another 5 and the transition will be complete.
Remember, this is just a concept device. OEMs playing around with the form factor and a few years of advance, building on the real world 'practice run' OQO, introduction and adoption of Microsoft's resolution independent interface... as much as I love my PPC I see them gradually being phased out. The draw of having a pocketable 'real' computer is going to be very very strong.
I also just realised - this is probably the only chance we have of a Pocket PC with a proper close application ability.
