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I don't think this device is supposed to replace either smartphones or notebooks. Not even things like the OQO. We'll hear more about it today, but it's probably aimed at keeping some data with you, and having internet access, and be able to use "light" XP programs on the go (not heavy crunching). Multimedia with a good sized screen also.
Battery life will go way up fast. All day is the goal. And prices will come down. This is the first entry into a new computing category between notebooks and pdas, and while it may not be for everyone, I think we can all agree that it has a place.
The real question is what kind of software MS will give it, and what sort of uses they envision for it!
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