With the short battery time, the price is indeed the only thing that makes this device attractive; and the price alone may not be enough to justify its purchase. I can see these things be used as thin clients in public spaces, especially if the casing is rugged.
Nevertheless, its introduction points to a hopeful change in mindset. First, the price. Subnotebooks and ultraportables have existed for a while, but usually they are hugely expensive -- Asus themselves introduced a 3,000 USD ultraportable recently; that's half a class full of 15 Eees.
Second, the price and format of the Eee, the VIA device and the Foleo suggest that manufacturers perceive a market where the required features have changed: less power, but with a keyboard and acting like a laptop instead of a PDA.
What I am trying to say is: even if these specific devices turn out to be not what people need, there will be similar devices that come closer.
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