There are some interesting products emerging in this area. Kodak has wireless picture frames (W1020 for example) that offer a wide range of capabilities beyond just displaying a slide show of photos on an SD card. These can stream slide show photos or video from a Home Network (WiFi or Ethernet) connected PC. They can play content such as podcasts, video, photos, and music directly from the internet. They come equipped with a handheld remote control that allows you to browse and select from the couch. They are streaming devices, and so don’t have much onboard memory other than some local flash to store images for a more ‘traditional’ digital photo frame function.
Here is an ongoing collection of odds and ends about the technology and other aspects of digital photo frames:
here is a tear-down of a Chumby Digital Picture frame
JPEG decode on an ARM processor – benchmark