Nvidia is shopping around a design prototype running their Tegra ARM processor, a chip powerful enough to run Wind CE and power a wee keyboard and screen.

Tegra was supposed to change the way we thought about smartphones a few months ago but the chipset never took off. Sadly, this doesn’t seem like it will make any headway either.

Semiaccurate writes:

The idea is simple, take a Tegra ARM part and saddle it with Wince. You get all the bloat of Windows with none of the compatibility. Throw in Flash Lite, Acrobat Reader, and a handful of other apps, and you have a passable crotchtop. That is what Nvidia is peddling around to ODMs with Firefly.

There are two problems though, first is that it is not a standard chip. The launch parts may have a smattering of accelerated wares, but like all the other purpose built software, as soon as the spotlight is off, you will probably never see another update. Then your widget becomes a doorstop.