I suspect you'll start to see these devices continue to push into the multimedia arena until they become completely portable PC's.

I think that was exactly Palm's advantage: it did not try to be a very small PC, but very practical, extendable organizer (as opposed to all those Casio and whatever organizers with tiny keypads on one extremity, and PocketPC on other).

I still use my original 2MB PalmPilot Pro (top of the line when I bought it) and for me the competition does not come from WinCE based things, but the likes of my new Ericsson R380, which has almost all organizer functionality (including superior, much more natural character recognition and smaller, but higher resolution screen) packaged into not too large GSM cellular phone.