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Dude, just invest in one of these.

This would be great for a subnotebook PC, like the Toshiba Libretto.

It's good progress, but still not what I ideally want: a device that is completely a standard PC, but in the form factor of a Gameboy Advance SP! The GBA SP is an ideal design: it is small, and has a flip-up screen that is sturdy and locks into a convenient position. If small buttons were used to form a fully-functional keyboard, as on the BlackBerry, and a small touchpad nearby for the mouse, this would be wonderful to have! The PC would have decent 3D graphics for games compatibility, a micro hard drive similar to the iPod, and of course Wi-Fi and GPRS wireless data support.

Does any company want to merge this pocketful of present-day devices into a future dream machine that could do it all?

These are specs

32-bit ARM with embedded memory
2.9" reflective TFT screen ... and so on

Known long before GBA's release.

And no, I'm looking for something that could actually compete with GBA. Like NeoGeo Pocket would have, or GP32 or Wonderswan could, if the world were a more perfect place.