Broaden your vision. This is about making smaller components.
What can you do with smaller components? Well, right away, you can put more stuff in the case. Your iphonanopalmtop thing can have a foldout screen and keyboard, or a bigger battery, or it can simply be lighter. I don't know about you, but I find an iPhone a bit hefty.
Now, if you look beyond next week, smaller components let you do entirely new things. You think technology is sufficient now to put a computer in a palmtop? Whatever, dude.
I want a computer in my eyeglasses. Optically corrected screens overlaying my vision. High resolution. And I want them to weigh the same as a normal pair of glasses. Don't forget to throw in a video camera for good measure.
Can we build something like that now? Or course not. That sort of thing today is either a huge bulky piece of headgear, or it's moderately bulky and has a terrible display. We need better components: much smaller, much lower power, faster.
Don't ever say we've reached the limits of useful computer technology. Until you're plugged in directly via your visual cortex and have a robot butler who brings you waffles in the morning, we haven't even reached the limits of uses we can already imagine.