I don't see that many problems with netbooks. I used to do tech support and 90% of the people that called in bought a $1500 system to surf the web. So many people waste money buying way more than they will ever need a computer for. If I wanted a computer to surf & watch movies, I would spend the $400 for a netbook with a larger screen. I have an Asus netbook, and it does almost everything my laptop does. My only regret is buying the 9" screen model, but I only paid $200 for it. The Windows 7 o/s was worth it, I got a nice little computer with a 250GB HD and 2GB RAM at my door for less than $215. I created a 2nd partition and threw a copy of XP on it, and I bring it with me everywhere.
When the dual core Atom's come out, you will see a nice price drop on the older ones.