Move Over, Pocket PC
I have had a PocketPC phone for about a year. During that time, I have had been impressed with its capability, telling people that it is essentially a full-blown computer. I can watch movies, use the Internet, play Quake, work with Office documents and so on--all of this is with an asterisk, of course. Slashdot even reported that Windows 98SE has been successfully emulated on a PC through VM software.
It is possible to run the exact same executable across both Windows and Window CE devices (like PocketPC) with different processors using the .NET Compact Framework. This is true; I have been experimenting with this framework, which is a small subset of the .NET Frameworks. Unfortunately, the Compact Frameworks provides significantly compacted functionality--for example, GDI does not support 2D transformations, curves, paths, or gradients. It's great for developing simple applications, but much of the richness of the Windows is unfortunately lost.
Somehow, I think that that Windows CE is a dead end, and that it will eventually be overwhelmed by minature laptop that run the full version of Windows XP (Tablet PC Edition) with a touch screen. In addition, these devices will include a hard disk and can be connected to a full size monitor and keyboard. Some examples of this have already been announced or are selling: