Usability. Out of the box most PDA has clunky audio players (Microsoft Media Player works better but is still hard to navigate through say a hundred songs)...then you need an external media to store more than a few songs...then you need to have an external card reader or contend with loooong transfer times using Activesync or need third party software (on most PalmOne devices). So in the end, to make a PDA an audio players, it need geeks to make it work.
Games on PDAs are hindered by poor button layout. The Tapwave was poorly supported and the Gizmodo is just arriving but support from big game studios are lackluster. You need big companies to make those splashy games that sell consoles.
One trick ponies are easier to market for the masses, as long as it does the job better and cheaper than the competition. And admit it, would you rather carry and play with one device that does all or a dozen that do their specific task very well (note: you don't need to carry all of them around).
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