Haha. Grimm somewhat hit the nail there with his post.
Personally, i agree with every point that grimm stated in his explanation, and i would like to add a few.
I'm a student. Being a student, you are given a choice of either a) a powerfull desktop pc that goes nowhere or b) a powerful laptop that is "designed" to go everywhere but in reality is just too heavy to lug around or c) a light powerful laptop that does not weigh on you bag, but weighs heavily on your wallet.
The usual options taken are either A or B, and if the guy is some rich *******, C.
If you choose A, you get a machine that is infinitely upgradable, but you cant really shove it in your bag and forget about it.
If you choose B, its a mobile that is not really mobile
If you choose C, its a powerful mobile that will make your wallet thinner than an aneroxic ^^;
With the netbooks, you have now a D option - a machine that is light, comparably powerful to tote around and yet kind to the wallet. And usually the people who buy this has a main machine so they can extend their productivity away from the main machine. There are people who makes the eee their dedicated machine because it fits what they want - i fell having a Geforce mobile 8800 to present slideshows is just too ....over-the-top haha.
Maybe i'm just rambilng, but the eee is perfect for me, a guy who has a dedicated machine at home to be used in campus. Its small enough that i can use it without making other people annoyed while in lectures. And the battery life is long enough that i can just open, start, work and shutdown without i need to tether and slave myself to find the nearest powerplug.
FYI, i'm typing this with the 701 (YES, 701!) and i dont find any problem with it. I'm still waiting for my 901 to be delivered though because of the atom