I got a Zodiac recently, and have spent a whle playing around with it.
Zodiac specific games are pretty few and far between, at best it seems to get optimised ports of other mobile device games. Some of these are okay, but when you're looking at £20 to £30, they suck in value compared to PSP and DS games. You get the normal Palm of 5 range of games too, of course.
The usual range of emulators for the device seem to be okay, if in various states of Beta testing, though not really using it for that myself. With a little frameskipping you can get them at full speed with pretty playable frame rates.
As a media player, the device is pretty cack with the default software - mp3 playback only (with no playlist support) and some terrible video decoder software in crippleware "limited functionality mode" (unlocking it will cost you). Fortunately, there are a number of open source programs rapidly moving through development, which look excellent. I've had two Zodiacs - the one I have now (the first had problems) unfortunately has a fair amount of noise in the headphones - you notice it between tracks or when listing to quiet music in a very quiet place. Just a tiny bit disappointing, that's all. Oh, and the default picture viewer is shite.
Ergonomics - well, considering it's a PDA they're really good. It is a little cramped though, and the layout of the (small) buttons isn't ideal for people with the Big Hands. And the analog stick is a bit fiddly for digital input games.
In terms of power, it's some way below the PS1 and Saturn - at least going by the games available for it. I suspect there's nothing that really shows off the machine's aging Imageon chip. Any MBX based device will absolutely slaughter it. The screen is excellent though - big, clear, high resolution and excellent colour reproduction.
Overall, it's a nice device. But if you're primarily after a games device, you could do better (though not by getting a Gizmondo!).
Excellent freeware port of Doom though!