Now that the Z's support USB keyboards and mice, the zaurus is begging for VGA out.
Hardware based VGA-out sounds like the only way it would work. Probably with it's own GPU or something (excuse my ignorance).
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Someone in our office has a Dell Axim X50v with the VGA adapter cable. The X50 must have the VGA output built in as all the cable looks like is a straight forward sync port to D-SUB connector cable. The cable is only £40 too and that includes the full ClearView suite for PDFs, Powerpoint, Word, Excel and picture slideshows. The quality of all the rendering is really impressive. Why we have to fork out hundreds for a CF VGA out card and limited software I do not know.
The X50v comes with a screen mirroring setting by default too, so I guess you could use it with an external keyboard and monitor, albeit at 640x480. Don't know about a mouse though and Pocket PC is notoriously difficult to control without using the touchscreen.
A Dell X50v with a clamshell keyboard and of course running Linux+Qtopia would be my ideal PDA.
I think for a PDA 640x480 is fine, until you start talking about using it as a laptop replacement.