I have two issues. 1. Screen size (like everyone is saying) 2. The bigger issue for me is the potential lower resolution for hooking up to a monitor. Although I don't know if movies will have the same resolution, I would love to hook up a Bluetooth keyboard and mouse while connecting to my TV for web surfing and more. Right now I bring my laptop and do that for watching movies and internet video presentations on the web for family, friends, and work. The thing is, for the price, I might as well buy a tablet with hdmi out and keep my old phone for tethering purposes.
Additionally, with smartphone makers listening to the market for future innovations, the message is muddled by carrier contracts and business models. In other words, carriers needs will overshadow consumers, and companies like HTC will wonder why their market share isn't doing better for the "allowed" upgrades. IMO, this is why tablets like the kindle and nook are so limited (using nook to type this).