Hey, I have what was a mid-range MacBook before the last update, and I use it as my only computer. I even use it for Photoshop since I do some fairly demanding design work. My only suggestion would be to make sure to get 2 GB of RAM, but that might be standard now, I'm not sure. It's really an amazing computer.
Yep, with 1GB standard, I recommend upgrading RAM via a 3rd party, and then selling/using the 2x512 you're stuck with.