The all-in-one device was a nice dream, but we don't think it'll ever materialize. As the article mentions, designing for so many uses means that you can't design well for each individual application. A circular wheel might work well for scrolling through songs, but it's weak for traditional games.
Consoles walk a fine line between gaming machines and all-in-one devices. Even the Wii plays photos and MP3s (poorly). Are game companies trying for the all-in-one grail, or just grafting extra features onto a console to drive sales?