Hi,
thank's for the information regarding Tegra. I thought it is a x86 CPU because many people compare it to Atom.
Anyway there are many interesting MIDs (Mobil Internet Device) coming and one of them is already on sale -
Gigabyte MID M528. This is something I would like to have. Of course it still has some significant drawbacks - very small storage capacity (but I think we will see 200GB SSD within one year) and no video output. They promise 4 hours of video playback, which is acceptable for me.
Make something like this and add decent storage capacity (at least 60 GB, better 120 GB) and TV-OUT. Also it would be nice, if the device worked as a phone too. A Microphone and speaker on back side and make it usable with GSM and VoIP (Skype, Gizmo etc.) This would be an ultimate all-in-one device: Phone+PMP+PDA+Navigation. I understand it is very difficult to build something like this, but the Gigabyte/Aigo MID shows it might be possible. The price ($700) is not exactly low, but it is acceptable. I believe it might drop below $500 within a year.
The new MID category (I see it as a sub category of UMPC) is very promising IMO. These device wil fit in a bigger pocket and offer a full featured OS. Theoretically you should have no problems to attach any external device to it (DVB-T tuner, DVD burner, printer, keyboard, mouse, remote control etc.)