Android phone 
The Android phone G1ís specs are still unknown but this phone for T-Mobile is rumored to have a 528Mhz Qualcomm 7201 processor; Data kit for USB connectivity in the box; 64-128MB Internal RAM; 256MB Internal ROM, 1GB MicroSD card; Dedicated camera button; 3.1MP camera (no flash) 2048 x 1536; Video playback files - H.264, streaming, 3GPP, MPEG4, and Codec 3GP and a Dedicated YouTube Player.


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MiniPC 
Maybe the Core Duo is still too much expensive for a middle-class customer, I don't think is too much power for you, so a MiniPC could go further, even if a Via processor or a Celeron M would be good enough.
Here we have either SATA or DDR2 Ram instead of ATA and DDR333 SDRAM, and this for only about 160x125x55mm. And please consider now 32GB or 64 GB Flash memory instead of traditional Hard disk for mass storage...
Power consumption under 20W...
Fanless so noiseless...

all in a single board computer (Mini-Nano-Pico-iTX form factor).

a touchscreen color display (why not)

Hava a look to this motherboard: Intel Core 2, Pentium and Celeron processors in a small mini-ITX form factor with the ZOTAC nForce 610i-ITX. The ZOTAC nForce 610i-ITX delivers compatibility with Intel socket LGA775 processors with 1333 MHz front-side buses.

NVIDIA GeForce 7050 graphics processor with CineFX 3.0 technology delivers DirectX 9.0 with Shader Model 3.0 compatibility

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