I think convergence is over-rated. We were told that the PDA was dead, because nobody wanted to carry a PDA and a phone. So, the concept of PDA has been continually whittled away until now, we don't really have PDA's anymore; we have toys that people pretend are PDA's.
If my bitterness isn't apparent...I was a proud owner of an Apple Newton. It served a purpose with function and style that none of my 4 Palms have ever come close to matching. The problem is one of size. You need sufficient screen real estate to be able to write adequately. You'll never get good PDA functionality on a 3" x 4" screen. But, the computer world convinced consumers that smaller was better. We'll see the return of truly functional PDA's once we get over the idea that screen size doesn't matter. Can you imagine predicting that letter-sized paper is going to disappear because those small flip-cover paper notebooks are going to replace them?
Anyway, back to the iPod and Cell phones. I own a Treo. I can load songs on it. I've spent a few hours getting this to all work just right, loaded the songs, built some playlists, and I've now used it as an MP3 player exactly 0 times. Now, I hate how big my Treo is, but it does provide access to my email and occasional web surfing. For that, I'll keep it. But, I long for a tiny phone.
I carry my phone 95% of the time I'm out, and because of that, I want it to be as small as possible. Period. That's all I want.
I carry my iPod perhaps 50% of the time, and what I really want is long battery life, and the ability to carry ALL of my music. I'm willing to carry the bulk of the iPod when I want that functionality.
So, if someone can marry the two (phone that is as small as possible) and an MP3 player that carrys all of my music and gets great battery life, then great. But, we are at least 5 years from this. And by then, there will be even smaller phones.
If convergence means losing key features (such as size, storage capacity, battery life) then it will fail.
Oh...and bring back the Newton. I liked the size.