They published an excellent article on the subject written last year. Some quotes:

We believe that situational services are going to become one of the most important requirements for and benefits of wireless handheld computing in the future.

and:

...this is an example of their [handheld systems] doing things that are useful to us and are not a simple extension of the desktop PC.

and:

I predict that once people have a chance to use a handheld that has robust situation services built in we will literally ask ourselves how in the world we got along without them.

I'd be willing to sign my name under that statement, too.