The one thing keeping me from buying a tiny Eee PC or a similar netbook is video performance. I know there's a relationship between power and price here, but if your netbook can't keep up with YouTube, there seems little point in having it at all. One of my primary motivations would be to keep movies ready to watch whether I'm commuting, a passenger on a long drive, on a plane or on a break. Video performance is essential to me, and even an iPhone can manage YouTube. This shouldn't be hard.
Mokalus of Borg
PS - The iPhone screen is too small for my liking.
PPS - And newer netbooks that can handle video cost the same as a low-end laptop anyway.