HP's not the sort of company that can enter a new market like this and turn it on its ear
This isn't a new market for HP. They've been a leader in the PocketPC space for years, with their Axim line, and Compaq's Ipaq link (no, Apple didn't invent the "i" thing).
I wonder now what's to become of the Ipaqs. I assume that the Windows Mobile based devices will simply be phased out.