I recently had the opportunity to review the Cowon Q5W, a solid portable media player that’s compatible with a laundry list of audio, video, and photo formats. What impressed me most about the Q5W wasn’t the extensive playback options, but how the $599 device (which sported a 5-inch touchscreen display, 60GB of storage, 802.11b/g Wi-Fi, stereo Bluetooth, and a Windows CE 5.0 Professional operating system) functioned so much like a PC.

Using the Cowon Q5W, I could view Word, Excel, and PowerPoint files, instant message my buddies using the built-in MSN chat client, and even plug in a USB mouse for navigating menus and Web pages as I would on a legit computer. The Cowon Q5W is unique, but it isn’t alone; we fully expect to see more of these mash-ups of PMPs and full-blown computers at CES and well throughout 2008.

An increasing number of manufacturers have begun to pack in robust features that enable PMPs to do more than just act as a repository for your photos, music, and video. For instance, the Archos 705 Wi-Fi allows you to download movie and television content over the air from CinemaNow’s extensive catalogue using the built-in Wi-Fi radio, view PDF files, and visit your favorite online destinations with the optional Opera web browser. 

We know of at least one other company that will debut a device a PMP at CES that utilizes a clamshell design, QWERTY keyboard, and run some form of Windows. These may not come bundled with Microsoft Office, an important suite for businesspeople who want to work on the go, but with the proliferation of free online alternatives (Google Docs & Spreadsheets, Open Office, Think Free), having Office isn’t as important as it used to be.

So where does this leave UMPCs? No one knows for sure. But one thing is certain, if these “hybrid-UMPCs” can offer a very similar experience for approximately half the price, and catch on with the public (just take a look at the success of the EEE PC), true UMPCs will have an even bigger uphill battle than they do now in creating a niche for themselves.