True, no doubt. I even carry a Treo 650 in my pocket. But while I'm a self-proclaimed geek, I really want my home to be a bit more elegant than a pocket gadget. Hence the desire for a larger, touch-enabled device. I want to be able to walk up to to, hit the touch screen, hit it w/ a hard-buttoned remote from across the room, etc.
I'm not above having this "wow-factor" in my house. The large screen (larger than a PDA) is a bonus to me.
Imagine...
You're having a party. Got 10-20 people in the house. Got FrontRow running on this thing (on OS X or thru VNC). Guests walk up, admire album art and play progess bar; they browse a playlist, add a song to the queue. They marvel in wonder and awe.
And I get to bask in all my geeky audio-video home theater glory. Yes, I'm a certifiable nerd. I still think this is cool. It's only geeky on the back end. On the surface, it's a really cool, high-end AV control unit.