Heh. This month two different companies attempt to blur the distinction between phones and the internet in two very different ways.
Google releases and update that allows Gmail to make phone calls.
Dell releases the Streak, an Android device halfway between a tablet computer and a phone.
I expect that in the long run both approaches will work. Two decades from now no one will carry a distinct cell phone, instead carrying something roughly Streak-sized that browses the web and uses that browser interface to do video chat, voice calls, and text messages.