It certainly does look cool. I'm still wondering how they're going to fit all those capabilities in this thing. I think it will definitely be larger than that, especially if it'll be a phone as well, which means internal storage space for numbers and such, plus an efficient way of dialing those numbers.

IMO, what will determine the sucess of this thing (whatever design it ends up as), will be whether its coolness is enough. Sony's console systems have done so well because they got in on the product cycle early before the competitors could launch their systems, meaning they had more games to start with, plus the ability of the PS2 to play older games (mostly). If numbers of games at launch truly is the factor, there's no way Sony will be able to compete with the current Nintendo handheld incarnations. There are already hundreds of games for the Game Boy.

But hey, the games should be much better for such an advanced system. I guess we'll have to see. Nobody believed they would attempt to cram so much into a little device, and it looks like they're still on that path.
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Matt