I think it would be alright. They are making much more comfortable than its predecessor. Plus the 5" 720p screen would be pretty easy to manage. My Vita is the same size and I believe it has the same resolution and I pretty much use it as a computer xD
It does seem like it would be a bit awkward as a phone if you made a call. Texting would be ok, but you would just hold it in front of you to talk. It would look like you're talking with your game system. Weird.
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Is it innovative though? It's not as if tiny laptops are a new idea... there's a reason they aren't popular or common
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Innovative, I think, more so that its a handheld PC with full game controls and special emulation software. I don't see those anywhere else xD