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I would think Dell would bring out a UMPC. The M1210 looks interesting to me since I have a bigger/heavier Dell right now. I've looked at the small Sony's in the stores, and noticed on their website that they have even smaller laptops there, as well as UMPC's.
The UMPC looks interesting but its size doesn't seem that great since you can't put it in a pocket, there isn't any advantage to making it real small, and the price is pretty high too, but if Dell was making them then the prices would probably be half of what Sony is listing them for.
Actually I would think that if Dell made their own version of the smartphone they could do real well with it, but they would have to partner with a couple of the major carriers in order for it to really work. Judging by the number of people who sell their PDA's because "their company bought them a smart phone", Dell would have a good "in" because of their corporate acceptance.
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