I think Nokia hit it out of the park with the physical form factor of the N800 itself and I do believe THAT was what Microsoft was trying to get across to the various hardware manufacturers but something got lost "in translation" obviously.
Hardware wise...well, Nokia used what works at the moment I guess.
Right now the N800 is perfect for my needs. Web browsing, occasional email checks, once-in-a-while video/audio use, and the occasional game. For the most part when I travel the laptop stays in its bag until I feel I need a "heavy-hitter" to do something.
I NEVER liked the UMPC specs or lineup at all. Honestly, asking desktop/laptop manufacturers to make something small and powerful usually winds up an abomination (Windows CE v1 devices anyone?) while the small consumer electronics and cell phone manufacturers have the physical format pretty much down pat (Sharp, Nokia, and for the most part Palm and RIM).
Microsoft pitched their Origami idea to the wrong damn crowd. They should have pitched it to the cell phone and consumer electronics companies exclusively and told the big PC manufacturers to take a friggin' hike on this one.