I can see a lot of potential here, especially for the more casual laptop user, as Bob mentioned. For myself, I could take something like that on vacation, when (and assuming) I won't be doing any heavy PC work, and just use it to keep in touch with my e-mails, do a little web browsing, and maybe read an e-book or two. I do that with my laptop and cellphone (used as a modem) now, but I see advantages to using a smaller, lighter, less energy-intensive, instant-on device instead.
$500 is a bit high to me, though, especially as you can get a refurbed laptop (like mine!) for that. But with a few 3rd party apps added, a bit more functionality, and say a $300 price, I'd consider it seriously.
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