I'm also VERY optimistic about the addition of fast-acting 3-axis gyroscopes. Samsung claims Galaxy S has six-axis “gyroscope-like” sensors but it's the same exact slow-acting 3-axis accelerometer plus slow-acting 3-axis compass as any other Android device (teardowns seem to reveal NO gyro). Android also needs to include “sensor fusion” to combine readings from these sensors so developers don't need a physics PhD. This could even be done in hardware so that both the OS and the app are saved a lot of work.

1080p doesn't sound very realistic right now but 720p with alpha-blending disabled and 16bit color instead of 32bit would still look spectacular and seems much more feasible.

If you're familiar with the Pandora handheld homebrew console, it seems to have an ideal (although large) button layout. Put that into a thin Bluetooth device, replace the LCD with a multi-touch touchpad found on many laptops, add accelerometer, compass, gyroscope and we're in business on ANY Android device with TV-out or HDMI (assuming the HDMI isn't locked down and crippled). It'll work like a dream on Google TV too. I think Logitech is the ideal company for such a device. They already make the similar diNovo mini keyboard and they're invested in Google TV so an updated version with these features would put me in heaven.

I honestly figured Sony-Ericsson would be the last company to do this for fear of cannibalizing existing sales. Maybe they've wisely recognized the inevitability of all this and want to get ahead of the curve.