Great editorial Bob... as always!
There is one instance, at least for me, where multitasking (and perhaps a fast CPU) becomes important even with handhelds: Internet connectivity.
I daily check RSS feeds with NewsBreak on my PDA. And I am not talking about 5 feeds here. I think I have around 100-150 feeds added to NewsBreak. Downloading all of them can take some time. With multitasking, I easily switch to another application, let's say iSilo, to read another chapter of my current e-book. Few minutes later I switch back to NewsBreak, and Voila!, have all feeds updated.
Another example: When I browse the web using NetFront or PIE, and may decide to download a larger file to my 2GB SD card, I don't have to wait until the download is done. Even if the download is 100MB big, I can easily switch back to reading my e-book or studying my stock market application without starring at the download process bar for half an hour.
Third example: At all the the time, I have an IMAP connection open to my e-mail account. When new mail arrives, I get immediately notified, even, for instance, if I am reading an e-book in that moment.
Not to mention GSPlayer, which is constantly running in background streaming live music from an Internet radio station.
You see, I agree with you that in the normal sense and for what PDAs were meant to be multitasking is not of intrinsic importance. But if you are like me who likes to do several things at once (yes, even we men can do that sometimes!), being able to switch applications without stopping them can be a real blessing and a time-safer!
As for the UI changes... I am disappointed that Microsoft's WM 5.0 almost looks identical to 2003 SE. I have much greater hopes that in this regard PalmSource will do something revolutionary with the first Cobalt releases ("Project Rome").
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