The Ubisurfer 9 has 1GB Flash, a SDHC card slot, USB Host, Wifi, and either a 1X or 3G connection. Retail is expected to start at $199 and it's already available in the UK. (If anyone in the UK has bought one I'd love to what you think.)
It runs Windows CE, which might be a concern. But it's also going to ship with Softmaker office suite. This suite is a full office suite (unlike anything I've found on Android) and the fact the company even knew about it was a point in their favor. Software won't be the shortcoming of this device.
I know free internet sound great, but when you look at the fine print this stops being such a great deal. You only get 30 free hours of web browsing a month.
On a related note, Datawind are planning to offer a pair of Android tablets (with the same data plan) in the near future. Retail is projected to be $249 for the 7" tablet and $299 for the 10". These babies will be running Android v2.2 on a Cortex A8 CPU with 1GB Flash, a SDHC card slot, Wifi.