Ouch... as in the immortal words of Rodney King - " Can't we all just get along?".
Anyway, for someone who wants to watch netflix, check email, ebay, and chat - netbooks are great lowcost way into computing.
For power users like myself - I have to buy a real laptop - but with newegg.com deals, I got a 14" Intel dual core 2.2 GHZ with 3GB of RAM and 160 GB HD w/Windows 7 32-bit and I spent less than $400.
That is why netbooks are losing steam - good laptops are getting cheap - and I estimate in about 1-2 years laptops in general will be cheaper than comparable desktops (minus gaming rigs).
Mike