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I think the key factor may be Google Apps and their equivalents. If you don't need local storage, this could be pretty cool. Use your phone for most things, but pull out a larger screen and keyboard when you want them -- and access the same content.
I like having a full-powered laptop, but I test web apps on mine, and do heavy graphics editing. I'm a geek -- I like tinkering with the plumbing. But many, many people who primarily deal with word processing, spreadsheets, email, and the occasional presentation could be very satisfied with the treo-foleo combo, if their apps and data were on the net.
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