From Gruber here is a mention of another product (this one is the ASUS Eee Pad) that is dropping Windows CE in favor of Android. Gruber points out that you can see the same graphic (minus robots) in Steve Ballmer's presentation slide here. A couple of thoughts:
1) there will be many iPad rivals
2) most of them will probably not use Windows
The new competition is between Apple and Google. We will see some astounding products come to market in the next few years. Almost as many will dissapear as this rapid evolution runs its course. The winner in this competition will be consumers no matter who captures the most hearts and minds.