The device is an integrated PMP running Windows CE, is capable of producing a 640 x 480 projection, has an embedded 3.5-inch LCD display, and utilizes an SD slot for additional storage. There's no word on pricing -- or if this is going to make it onto our shores anytime soon -- though we're pretty sure a crafty importer can probably get one of these into your hands.
While the device is a portable media player and clearly not designed for out-of-home use, it demonstrates that very-small-scale projectors aren't only possible, they're commercially feasible now. The technology is expected to be embedded into PDAs and mobile phones soon, and we expect to see the first commercial digital signage projects taking advantage of them soon after that.
A better question will be how much more cost effective (if at all) the technology will be than LCDs, particularly as the cost of the latter continues to plummet. Pico projectors are not designed to make a particularly large or bright image, but there is still a general belief in the industry that they might be able to offer a reasonably bright, reasonably large moving image at a price better than LCD screens in either the 20-30" or 50+ inch range, depending on who you ask (and believe).