Have you ever used an Atom processor before?
While I agree that a C2D or i7 processor would be amazing, the Atom is really a very capable processor for its intended purpose!
I run OSX on one of my Dell Mini's (1.6Ghz Atom, 2GB RAM, 64GB SSD). The OS is very snappy and it has no problems running and multitasking web/email/office/itunes/iphoto applications.
Having used multiple brand netbooks, the SSD in the Dell really made the most noticeable difference in the feel and usability of the system. Pairing the Atom with the right hardware (namely an SSD) is extremely important. Were Apple to produce something with the current flavor of Atom, 2GB RAM, 64+GB SSD, OSX, good usability (smart use of touchscreen or a well designed keyboard) and a reasonable price, I think they would still have something good. Unfortunately, I can see (here at least) a lot of people would still expect more out of it than it was designed for and complain it doesn't have the power to run applications as well as their loaded MacPro does!