is way too overpowered for most people I know. For a lot of people, web browsing and e-mail is all they need and the computer that meets that low standard was available about 10 years ago! I'm unusual among the people I know because I'd like to do CAD and video editing, so I still would not be completely satisfied with a netbook. A non-trivial number of gamers have moved from the PC (including Macs in this context) to the Wii and other gaming platforms.
Computers became ubiquitous when they were de-emphasized as computing machines and promoted as communication devices. A netbook is a good communication device even though it is a pathetic computer by today's standard.
I'd like to see Apple do it brilliantly, but I don't expect cheap.