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It's definitely not for the feint of wallet. That does make it a niche gadget... for now. I'm confident that in the next generation of CPUs (e.g. with the desktop in your handheld promised by Intel) these will explode as they move into reasonable pricing. And if we get those expandable e-ink screens, they might even get a nice display.
You're right about the battery being a weak link. And about other options appearing like the Nokia 770. But all these devices have their own weaknesses, and will continue to have tradeoffs for the next few years minimum. Certainly for basic uses like email, IM, ebooks, etc the Nokia is pretty nice.
But, wow, if you really need/want XP in your pocket, this is very cool!
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