Better input, better output
Microoptical Corporation in Westwood, Massachusetts, has started selling something I've wanted for years. It's a cheap video viewer that looks like a thick pair of sunglasses but lets you view full-screen video.
They sell the MyVu Personal Media Viewer for $269 (only direct, through their web site, though apparently they are adding distributors). I haven't tried the device, so who knows how well it works, but I've used similar ones years ago and they worked just fine. Looking through these glasses you see a full image about three feet in front of you. The key thing is they're super-portable, so you can plug it into a small device (like a portable Windows Media player or video iPod) to watch full-screen video anywhere.
I'd love to couple this to a watch-sized PocketPC and combine it with speech recognition for input. You could get most of a full desktop PC experience with equipment that you can wear on your wrist.