Well, better Android than WinCE, but you can already get a 7" laptop with Linux for under $250, even with an Intel processor, double the storage and 4 times as much RAM as this. It's called the Eee 2G Surf.

In my opinion, prices on newly-introduced netbook models are going to stay at $200 or above until Skytone gets some competition from other ARM-based laptop makers, maybe one or more portable DVD makers looking to branch out. I would bet the Eee 2G will be the first to hit $100... but it'll be a used model on ebay, where the going rate for them is already below $150.

It's hilarious to me that people still ridicule netbooks (proper netbooks, not slightly smaller notebooks for $400 and up) for not being able to do anything when many people I know use their more expensive PCs for nothing more than a music player, viewing or printing the occasional Word document (Abiword or even Google Docs will be enough for many users), Facebook and other social websites, and instant messaging. Flash is important for web based videos and games, and some use Skype as well, but both Flash and Skype have already been ported to Linux on ARM. The Alpha 400 would have been insufficient for these people because of its lousy Flash support, but a 2G Surf or this Android thing (which even has a built-in webcam) should be fine.

As much of a threat as netbooks are to the companies who've made their fortunes on Wintel, an equal threat is the rise of smartphones. People with iPhones, Android-based phones and soon the Palm Pre can use just about any web-based app they want to from wherever they want to. You can get an iPod Touch for about $180 which does all the same stuff on a Wifi connection. For less-technical users, a regular phone with a QWERTY keyboard can even be enough, as is the case with a woman I know who uses an LG Lotus to access Facebook and instant messaging programs to stay connected, but has no PC at all. Netbooks are aimed at the 50% of the developed world and far greater percentage of the developing world who can't justify the expense and don't need the speed of a full-sized PC, but need something more than a phone. They're like WebTV was 15 years ago, but more portable and with less hassle and no monthly fee. Whether or not they ever take off in America and Europe, it seems inevitable to me that they'll work in South America, Asia and Africa.

I don't think Microsoft and Intel (or for that matter Apple or AMD) really have a workable strategy for stemming that tide, just lots of mechanisms to slow its progress in developed countries.

Thank you for a very thoughtful post.

1. Bust Wintel: To bust Wintelism (high prices) we need to bust down the floor on prices. The lowest possible price on something -- anything -- with a keyboard and screen that can be used as a computer is all I am looking for. I don't care how crappy or underpowered Engadget or Laptop Mag thinks it is: It Will Drive Down All PC and Laptop Prices, even Apples. It will even if its a "toy" on a bubblepack card.

I am talking new prices. A notebook that sells for $100 new will sell for much less used. So let's shoot for $100, new, now.

2. Many Brands: As you noted, competition is key. We need to see 30 or more brands all shooting for $100 and under, and I think it is just a matter of time before the Chinese and Asians will do this.

3. Offbeat Outlets, Ubiquity: And the really cheap computers need to be seen. That is why Skytone has sold only 100,000-200,000 Alpha 400s. They don't know how to market this; Coby does. The masses will have to see them to buy them. Getting these in drug stores, department stores, hardwares, etc. -- not just the Walmarts, Buy Buys, and the like -- is a must.