What processor is in that thing? With that pricing it's very debatable, The iPhone 4 is 500$-ish with no plan and it packs the A4, a beast of a chip. The G2's 800mhz Snapdragon proves itself to the big dogs and it actually can be OC'd (a cell phone OCing wow lol) to 1.3ghz and it's priced at around 400$ no plan.
Oh but most importantly... How will you fit it in your pocket? 4.8 inches of XP fun.
USB port (gotta have mouse).They should have a burning (above 200 mw)Laser in it too to make it a Swiss Army knife tool (to light up cigs,start fires).Yeah an integrated Laser in it to make it extra cool.