We actually got to play with this last week, and definitely think that it's something to watch out for. The touchscreen works well, the keyboard is small but usable, and the sliding mechanism is solid and functional. There's also a mouse touch-pad on the right, as well as a front camera and connectivity up the wazoo. Seriously, it's the UMPC (they're not calling it a UMPC) for people unfamiliar with the platform.
HTC Shift [Gizmodo]