Very small tablet devices, cool functionality but on the whole a little underpowered and hard to use.
Time passed and the team has been hard at work improving the Origami UI, enabling it in Vista and improving apps such as IE and the Microsoft Reader as well as the media player and picture viewers so they're much more "fat finger friendly".
Given the advances of the UI and the performance level of the hardware I'm wondering if we're getting to a good commuter device here. I can imagine having a high end PC at work, and laptop or office PC at work and a UMPC. Utilizing a combination of Exchange (corporate or 3rd party) the Groove server and the SyncToy folder synchronization power toy and maybe even Windows Home Server (and a Windows Mobile smartphone) you can grab the appropriate device for the task in hand and get what you need to done, wherever you are.
Okay, so it's probably a little complicated for the average user but it's becoming more real . Of course I'd still like a "real" keyboard on my UMPC for when I'm replying to email of trying to fix up lines of code, a bigger CPU (but better battery life) and an even better version of Reader (in the demo it doesn't use portrait mode which would be more intuitive for reading).
Maybe combine it with SideShow so it can act as a media player and I wouldn't need a Zune, and add a camera and it would make a great VoIP video-phone!