I admit. I have become a handheld junky. My desk is strewn with quite a few devices. I have even been contemplating buying my 7 month old son one of those kids laptops you see at the Tandy store (Radio Shack for those North Americans). Maybe I will when he drools less.
I am coming to the defense of handhelds! Namely and currently, the Nokia 770! *gasp*. It Does Little, and Not Very Well Yes, I do think they choose the wrong toolkit (qtopia good! maemo bad!) :) and I think the gui has too much wasted space. But it really isn't that bad at what it is intended to do, an "internet tablet" (although tablet is a bit of a misnomer). I use the one I have all the time, from the couch, from bed, from the swimming pool area. The hardware isn't all that bad, and when I get enough time, Opie and Qtopia will run well on it (already runs, just not releasable yet). I do miss it having a keyboard when I use it, as the Zaurus does, but it has a usb host I can plug one into.
I too can see similarities with the Zaurus community 5 years ago.. (see Ben Meyers post at planetkde), but Ben forgot to mention one thing. The Zaurus community is still moving forward. It's death is greatly exaggerated!
New kernel (2.6 series) is being worked on, Openzaurus just released 3.5.4, Opie is updating it's bluetooth support, etc. The Zaurus lives on because of its community, despite of it's manufacturer pulling the zaurus out of western markets. Granted, things have slowed, but it is still there. New people come and go (both users and developers), but the main thing is "new people come". Some of us have been there for the ride, and are still hanging out in the trunk (the boot to you aussies!)