1) Yes. All the main memory is Flash. Given the limited space in a PDA. It's probably all on one chip.
2) A qualified yes. The battery rating of mAH (milli-amp-hours) relates capacity. A 1 mAH battery will deliver 1 mA of current for one hour. Think of it as an electronic gas tank. If you hold the operating conditions constant, a tank 40% larger will allow you to run the car 40% longer. I say qualified yes because there are almost always small losses involved with capacity increases if the interior geometry doesn't change. In the case of a larger gas tank, the car would weigh more when the tank was full and would then get slightly less gas mileage. For batteries, there are chemical losses internally depending on the physical layout inside the battery. My guess is that such losses would be less than 5%, maybe much less, on a battery that small.
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