Looks like maybe the future is starting to look up for PocketPC-based phones.
I used a Motorola SmartPhone (MPX200) for a while, but gave up on it because of poor performance in the Exchange sync department (on the part of the phone, which bogged down under the pressure).
As far as T9 text input has come, it drove me crazy trying to type email on a phone keyboard, so I switched back to the Blackberry Phone, which does a great job for me and others where I work. It just doesn't run the Windows Mobile OS.
But, looks like Motorola has some new models up its sleeve. While the new SmartPhone (MPx100) looks interesting, the new MPx PDA-Phone looks very cool. With a full keboard built-in, a true HTML browser, WiFi built in, etc., I'll be all over this (if it ever makes it to the US, that is). Availability is set for 2nd half of 2004 according to Motorola's press releases.