This Sony gadget called "My Life Online" is a nice little innovative device introducing the concept of wi-fi skype phone with browsing and messaging capabilities. As the wi-fi cloud expands this kind of devices will make more sense as an alternative to mobile phones specially for the youngsters as they do not need of a monthly service fee (and no minute or messages limit to exceed, a big problem in cellphones among youngs).
I'm surprised it does not have a camera and no gaming experience which coming from Sony is indeed surprising.
Something I'm glad to see is that it also competes with the iPod, as it has music capabilities. It is time for some gadget to save us from the iPod, which I believe will be seen historically as a great marketing success and a very limited gadget (a Swiss army knife to the extreme, no tools just the knife ;). No doubt people like it simple ... but eventually the needs overcome the simplicity drive, I hope.
Summarizing, it competes with mobile phones, iPods and in third place it seems to be a big push for the web as a platform paradigm as it's an all non-microsoft internet based services providers alliance. I like it!
It definitely can't beat the Windows Mobile phone/pocket pc experience in the short term, but it seems like a nice option that can grow in the future.
Interesting little device. It might be a nice Santa's gift if that gaming browser experience is good enough ...