http://mozillalabs.com/conceptseries/2010/09/23/seabird/
Unless foolproof voice recognition comes first.
I would have to order mine with a built-in microscope so I could read the small type on the screen.
That said, apparently someone has already hacked Symbian to interact with the Wiimote, so the current smartphone hardware is already capable of supporting Bluetooth controllers. If you had S-video out to plug into a TV (or if you supported one of the newfangled wireless video protocols) you could have a gaming console that folds away into your pocket. Oh, the possibilities. :-D
A Sheeva-plug form-factor device with video output, and Bluetooth support, sold with a set of Bluetooth controllers and a sleek carrying bag with pockets for the cables and controllers. You can carry it to your friend's house in one hand, plug it in to his/her TV set, and be gaming in under two minutes.
Package it with a bunch of casual multiplayer games, and whoever owns one will be invited to every party ever. ^_^ You could even sell it to those little businesses that operate children's birthday parties.
No it's not! I can't wait to have a killer smartphone with HD graphics on a high-resolution 5" screen. That would really rock. Smartphones this powerful could replace laptops as long as they had monitor-out and usb plugs.