Well, the idea is interesting, but after trying the UMID M1 and then the Viliv N5, I am not too optimistic about your project. For me, the only advantage of an x86 platform of that size is being able to sync Outlook data from work into a "mobile" Outlook. That is whai I miss on the Pandora. But in general, an ARM platform is much more suitable for a small mobile platform.
I am not a hardware expert, but my impression is that with an x86 board you have to care about heat and size of components so much, that other aspects such as ergonomy and overall quality need to get into the background, making the device less usable after all. At least the was IMHO the case with M1 and N5.
However, maybe a private project would be much more successful than those industry projects. Who knows. I recently have seen such a case, where a bunch of "normal" people have developed and built a very, very nice ARM-based Linux gaming console that is even suitable for productivity, and that's better than any industry based device I have seen recently. ;-)
I will be glad to provide tipps and experiences, if you start such a project. But as I said, I am not an expert, so I am not able to assist much.
You may have a look at my homepage. I have some pages about the Viliv N5 and UMID M1 there, that may give some ideas to think about.
http://www.hermocom.com
Either search the site for N5 and M1, or browse the knowledge base's UMPC section.