This reminds me of early Linux-based appliance, the Netpliance I-opener. The Zonbu device looks cool and has a small footprint but with the following specs it's probably not suited for much more than casual Internet browsing:

• Intel-like ultra-low power CPU


• 512 MB RAM + 4GB flash-based local storage


• Graphics up to 2048 x 1536 (16 million colors, 75 Hz).
  
  Hardware graphics and MPEG2 acceleration


• PC-compatible ports for keyboard and mouse


• 6 USB ports to plug-and-play all standard USB accessories
• Broadband ready: 10/100MB Ethernet built-in.

However, for those of us with casual Internet users like the elderly it's not a inconceivable that there's a market for this type of device. It's just unapparent that as of yet that any other similar offering has achieved significant success.

(via Zack )

For more Mark Hinkle, visit his EncoreOpus blog.