Good points but I don't think the market is shrinking, I think its exploding but the competitors are all over it squeezing Nokia out. Nokia pioneered this movement with the 770, but it seems, like many a pioneer, they came too early and are now being overtaken, somewhat comprehensively.

Lets take the case study that is Palm. They pioneered, they dominated the market, they got left behind and nearly died from it.

Lets hope Nokia takes a page from Palms book and emerges from the dated looking N810 days to give us their Pre equivalent. Mer is breathing life into the hardware but the hardware is moving forward. At the moment I don't see anything as revolutionary coming from the Nokia camp unless they have something very special they are holding back from us. Lets hope.