It's starting to happen... today I saw a device that is half digital camera, half MP3 player. The Fuji Finepix 40i does 4.3 megapixels AND plays MP3s. For $700, it'll be a good choice for a lot of people.

The next version must include a PDA, cell phone, and wireless 'net, and then, IF I can download new MP3s while I upload pictures from the digital camera AND call my friend at the same time all while receiving an alphanumeric page, I'll believe the brave new world has arrived.