Why mess around with a tiny touchscreen interface when you can run your android OS from your big screen TV -- or really any screen for that matter?
This prototype dongle, codenamed Cotton Candy, is designed by Norwegian company FXI Technologies. It's about the size of a normal USB stick, 8cm x 2.5cm and 21 grams, but packs both USB 2.0 and HDMI-out plugs. It's powered by a dual-core 1.2-GHz Samsung Exynos ARM CPU -- the same one that powers the Galaxy S II -- and employs a microSD card slot for data storage. It also includes 802.11n Wi-Fi and Bluetooth connectivity. Cotton Candy currently uses the Android 2.3 OS but can also support Unbuntu as well as a virtualization client for Windows, Linux, Mac.
The device is designed to work on anything with a screen and USB port -- TVs, laptops, smart phones, anything. You can hook it up to a HDTV and stream 1080p videos from the net. When you hook it up to a computer, either Windows or Mac, it will run android applications in a secure window -- essentially creating a dumb terminal.