"From the function view, I think Win Xp phone should be much better than Iphone. It has a faster CPU ( which can run Xp), more ram (up to 2 gb). The most important thing, there are so many entertainment software, if ports are available, this phone can be turned into an portable entertainment center. It also can run office software. You even don't need to bring your laptop around you for your business trip."
Windows XP is a terrible OS for mobile devices (as are most LINUX variants) as it is designed for machines that have external power. I can (and do...and have for years) run mobile versions of MS Office programs on a variety of smart phones.
The 16GB storage is nothing too exciting
http://www.tigerdirect.com/applications/category/category_slc.asp?Recs=30&Nav=|c:1579|&Sort=1...hey I can buy a 16GB microSD for $80 bucks).
I am guessing the 0.3 Mega pixel camera is a typo as I believe my niece had a Barbie digital camera with those specs (640 x 480=0.3MP...hmmmm), a better part of a decade ago. For sake of comparison, my Blackberry has a 3.2 MP camera and my Nokia e71 has a 5MP camera...both have WiFi by the way.
As for the processor, you should read this
http://www.slashgear.com/intel-atom-z550-2ghz-moorestown-gets-first-demo-0840480/), based on what I have seen of Atom's machines so far they still draw too much power for a reasonable smart phone form factor and that screen certainly won't help the matter...but I guess if you really want a netbook (with integrated cell phone) without a keyboard this is the device for you. I'll keep my notebook and Blackberry for my business trips, thank you very much, however if the babes come with it, I'd be interested (and possibly incarcerated)...

"Now it gets psychological, friends."
Capt. Lt. Henrich Lehmann - Das Boot 1981