Not Easy To Use The operating environment isn't always very easy to use, either. I would rather gargle with ground glass than volunteer to teach users how to synchronize their files on a CE system. That group can move usable files between desktop and handheld. In the end, the problem with Windows CE is that it's complex enough to be inscrutable to many of its target users while having applications that are no more advanced than what was available back in 1989. The other limiting factor of CE handhelds is the form factor.
Miniaturization hits a point of diminishing returns.
A user's main interaction with a computer is though a keyboard and screen. When you achieve enough electronic miniaturization to squeeze all of this wonderful power into 15 ounces, you end up with a keyboard and screen too small to be effortless. Moreover, these units are so light, they bounce around when you type on them, so you need to hold them in some unusual ways. I achieved 22 wo rds per minute on this keyboard, but only when I had the Velo attached to its dock on a flat, hard surface. There needs to be a revolution in fold-open screens or use of IBM's butterfly keyboard to make these units into workhorses.