I like the Idea, but it looks like a huge PDA, which is cool and all. I know Sony 2 years ago successfully made a 9in-ish PDA that ran real windows. It costed $2000
Now, that reminds me of this. Now, if it can game, and its that tiny, it can't have the Windows xp or anything like that. I know from having my PDA for 3 years, It sucked at graphics. I was able to play the first tomb raider on it, and I think it had graphics comparable to the computer version (the first one)
I don't know about the design, to bulky, and there is no way that could feel comfortable to game on, seriosuly, your wrists would begin to hurt.
Also, its not gonna be cheap, especially if it can game with real games (im gonna guess around $900)