you know, the market of 7" screens are obsolete!
Today you can get more horsepower out of a MID then an Asus EeePc 701!
Plus, the device is smaller, and about as cheap.
A reason few people buy a 9" mininetbook might be due to the too high salesprice, not really because they are less favorable.
I see no reason to continue selling a 9" device with a 7" screen (meaning 2" of lost space), while discontinuing exactly the same device but with higher resolution.
It makes little sense to buy a 10" mini notebook as well, those have the same resolution as their 9" brothers; and when buying a mininotebook, size matters!
The issue might rather be,that there are tens of different 9" devices on the market,and ASUS isn't the cheapest amongst them.
Many favor the MSI Wind and Acer Aspire One over the EeePc901.