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These guys are hardware making pros, they will be very cheap and will function pretty well. Probably won't be great for e-books at that size, but a very cool little device when it comes out.
I've used their netbooks and they are pretty sweet, perfect for browing while on the couch. Also they might make for great media center/household controllers. If it is a linux version it will be open source and all kinds of crazy software will emerge.
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