The Newton had the handwriting recognition that was decent (kind of, if you printed and trained the unit enough) and it could convert a written word to computer

The Newton had the handwriting recognition that was decent (kind of, if you printed and trained the unit enough) and it could convert a written word to computer text as you wrote. You could also just write and later on convert everything to text. The same applied to diagrams as well. Draw a sloppy box, and the Newton could clean it up for you, turning it into a vector image. Everything was automatically saved---there was no "desktop" or "files" on the Newton (in many ways, it's the proto iPod/iPhone). What you are asking for is possible with today's technology, except for the folding bit.