7 seems to be better about actually doing stuff, though watching my friend Rubens netbook try to boot with 7 was a painful experience.
Netbooks run the Atom processor, which is more or less on the same performance scale as a Pentium 3 clock for clock. It is significantly slower than any current desktop cpu available by over a factor of 4 at this stage.
To be clear, OSX also crawls on an Atom based netbook. Neither really have any place on such hardware.
I guess they are pretty much just giving up on that market and letting Google take it.
I very much doubt it. Given the pains they went to to wipe Linux out of the netbook market, I can't see them being any more forgiving for google to step in.