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With the advent of web 2.0, you can now pretty much find online applications to do the most common tasks, such as word processing (open office through a web browser), photo editing, etc. Therefore a device like this doesn't need much power. However, I've seen videos on youtube of people running 3D CAD applications on them, and even counterstrike source!!
I do still think that there's a place in every gadget geek's armoury for a PDA though.... long live the axim!!
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