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We had this discussion once already methinks.
So I'll keep it short repeating only the most important points.
1. There are enough places where bringing in of a camera or a phone (or both) is prohibited. With all in one you end up leaving everything at the gate. Sucks, eh?
2. Touchscreens are not the perfect method for everything thus as a working or gaming device it sucks too. There are already enough good game concepts vanishing while more and more dumb minigames appear. Thanks, no.
3. Size. What I certainly don't need is a music player the size of my phone, or a phone the size of my reader.
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