Absolutely. I haven't heard anything specific about the TTS-on-a-Chip, but server-based TTS is getting more human-sounding all the time. If you've ever been to AnaNova, you'd hear what I mean. We use the same engine as that site (L&H Realspeak) in some of our company's IVRs, and they do sound pretty realistic.
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Gettin' back into it thanks to slimrio!