Somebody mentioned PSP before, Ive found that it is a great platform for LH entertainment, as you can store music, games, and movies all in a compact package. The Sim cards (you buy em separately 1G-4G) don't take up any space, and the game UMD's are not much larger than a Ritz cracker. Decent battery life too. Bigger screen than an iPod, yet not too big a unit overall.
Sometimes pulling the laptop out is a pain, esp if you are stuck in coach. Hard to watch anything if the guy in front of you has moved his seat all the way back and your screen is pushed forward as a result. No such problem with the PSP, as you can usually just place it in a pocket of your flight jacket.
You just have to get past the "kid thing" aspect of it... As most adults do not usually carry one around, but afer showing the utility of mine vs. my iPod, many coworkers have picked one up too.