The only flaw I see in this logic is that they assume everyone wants to watch television on a screen that's < 2" diagonal. Or play games for that matter.
Give me a roll up OLED screen and I might start to consider it, but I'm a purist who believes a phone is a phone, though I do like SMS.
But then, I don't want to carry a cell phone. It is nothing but an interruption. Unfortunately the job requires it.