Sony and Fujitsu (P1610d) are moving in the right direction here with LED backlit screens but for Origami-based units these need to be changed too. Then there's Wifi. Some manufacturers are still putting in cheap USB-based wifi modules that take 2-3Watts of power. These need to be reduced right down to 1W or less parts. GPUs need to be more efficient too. If you want to run Vista with any sort of aero-glass feature, add another 1watt on to your power drain. And finally, batteries. UMPCs in 2006 all came with 25-30W/hr batteries. A step-change here is going to be the most important development for UMPCs. We need 40w/hr batteries at 250g before it all comes together nicely. It will take time before that sort of technology reaches mass-market pricing levels.
The above comment was written by Steve at Carrypad.com a page that you should book mark and move to your favorite 1st place because it's a page that truly will inform you about these devices called UMPC. I the above comment Steve has summarized what I believe are the features that need to be reached in the Second Generation. BTW I share with him the same feeling when I see those pages that have been criticizing UMPCs since day one now jumping to "WOW!" position after they have seen a StreeDesk demostration running in the coming soon Intel-VMW-Yahoo UMPCs. This program that have been around UMPCs since day one!