a) First, for something to be a "toy" it has to be fun. Putting a computer in my mouse is not fun; it's frankly rather boring.

b) It's only a good sign if you (the founder to which Paul is speaking) have a future in mind where your product scales from toy to appliance. There are fundamental problems with this product that prevent it from scaling in such a way. Display connectivity is a big one.

IMO, this whole concept is rendered obsolete by the "computer on a stick" form factor that a few big names have released. By plugging directly into the HDMI port on the display, the highest bandwidth link is physical, and peripherals connect wirelessly.