This would be a great idea. I have a Viewsonic ViewPad SuperPDA from about eight years ago. It's one of the first tablet form-factor PC's and it was powered by CE. Resistive 800x600 touchscreen with USB host, PCMCIA, CompactFlash, integrated sound, VGA-out adapter. I have a wireless network card in there and I can use a USB keyboard along with the stylus for mouse input and it's really nice. What makes me mad about my device is no option to upgrade that I can figure out/hack. I would love to install the latest version and get .NET Compact Framework support. Writing native CE apps in VB or C is not to my liking! I can install many CE apps, but not Windows Mobile (which is a layer over CE), and nothing for .NET. Its built-in web browser is pretty good for its time (though it needs updating pretty bad now), and the Microsoft Word (lite) works well.
Bottom line: if I could get a modern piece of hardware running CE I would. It's cheaper, and much more stable. I'd love to see $150 netbooks made possible this way -- especially since my target functionality is rich text editing, web browsing, and remote desktop support -- all possible on these devices.
-Arian