The UMPC revolution has just as many implications for chip manufacturers as software makers. Intel got in there first with the Atom and now Nvidia is getting in on the act with the Tegra. According to the BBC report the chips are intended for devices with up to 12 inch screens which puts them squarely in the middle of the UMPC range. This is further evidence of the end of the desktop machine.
In the home I think the network will coalesce around the STB with other devices spinning off around it. I’m not sure about dedicated home servers as this is far too techy for most people. The increasing power and capacity of increasingly small components makes me think something the size of a VCR will be sufficient for most people. Entertainment will be delivered direct to the correct device; video to the STB and music to the handheld.
I think people will end up with three basic devices: the UMPC (eg Asus), the STB (eg Humax) and the handheld (eg iPhone/Blackberry). There will be some crossover in what they can do, for example I would expect email to be primary functions of both the handheld and the UMPC whereas video would be primarily be delivered to the STB and maybe the UMPC for journeys. Video on handhelds is novelty which I expect to die off. Some people will still by dedicated desktop machines for specific high end uses such as graphic design or film production but those numbers will fall back to something like the percentage of people who had a PC in, say, 1994.
Ultimately what technology companies need to remember is that while gadgets may be able to do more humans are still simple creatures. The proof of that is that simple concepts and simple devices are the ones which break out. Google is still a single function website and the iPod thrived thanks to its simplicity. People can deal with two or three gadgets which make their life easier, anyone planning on more than that is in for a shock.
Pic: Gizmodo