Now, I like the site Roughly Drafted as it provides pretty comprehensive histories of the mobile industry. Their analysis, well, it's often darn good and often spot-on. Sometimes less so. I'll leave which of those options this article is as an exercise for the reader (note, as you engage in this exercise, how the article misunderstands the difference between WinCE and WM5 and also suggest that you can edit documents in Smartphone Edition). But when you have an article titled "The Spectacular Failure of WinCE and Windows Mobile", it just begs to be linked to.
I expect this particular catfight between Windows Mobile and the iPhone to continue - I personally hope that it's as fun as the Mac Vs. PC debates of old. (Full Disclosure: I am a Mac user who also uses Windows Mobile. On the desktop, I think Mac is better. On mobile, I think WM is better. Here's a shocker: I don't expect that opinion to change once the iPhone is out)
Not Good At Anything
They were wrong. A decade later, WinCE has only overtaken the competition where there hasn't been any competition. The market abandoned standalone PDAs when the real money turned out to be in mobile phones.
WinCE isn't particularly well adapted for mobile phone use, because Microsoft designed it to suit the needs of a paperback-sized PC.
Update: Wow, remind me why I fed this troll who thinks that top-of-the-line PPC apps are junk?
Ahh! I just did it again!