The keyboard depicted is full-size layout. If indeed this product has a 10" screen, like the Asus netbook I'm typing on now, then those keys are going to be pretty tiny. Most netbooks use a combination of shrinking the physical key size down a bit as well as making some compromises with key layout to reduce wasted space.
Except for the Sony Vaio P, and the HP Mini Note 1000. Both go with the "10 inch wide screen and full keyboard" arrangement. I wouldn't be surprised to see Apple do the same if they go into the netbook market.
$899 is pretty high, but sounds about right for Apple.
Yeah, a little high for a netbook, but still cheaper than most laptops.
$899? For $100 more you'd get a macbook with a bigger screen, faster processor, and other goodness? Ridiculous.
That's one way to look at it. Another way to look at it is:
For $100 less than a Macbook, I can have a device that isn't dinosaur sized.
netbooks aren't just "small laptops", they address a completely different use niche than laptops. If you want the faster processor and "other goodness", buy the dinosaur-book.
If you want something lighter, more portable, and that's just intended for basic use (ie. the slower processor isn't a problem), then you get a netbook.