I've always thought that mobile devices will converge into a single device. In many ways, I'm still surprised that people are still purchasing devices that can only perform a single function. Would you purchase an MP3 player that is only capable of playing music files if you could get one that could play video and browse the web? Or, why buy a smartphone that doesn't have a built-in GPS?
I'm sure that all future smartphones will have a built-in GPS. I'm willing to bet that the next iPod Touch will have a built-in GPS. Archos now has a web browser in their latest portable video device (PVD). It's almost like an iPod Touch with a huge hard drive. They're calling their latest devices a "Internet Media Tablet."