I don't have a problem with a 12" netbook, and in fact I think it is a good size for a lot of people. My wife wanted a small and light computer, I didn't think 10" was quite big enough for her, so I bought her a 12" with a dual core processor. It cost almost 3 times as much as a netbook. Maybe it helps her to have more power than a netbook, maybe not. My old Dell laptop probably has similar CPU power to a current netbook and with WinXP it is fine.
The article didn't say what OS the EEE would come with, but it needs XP to work well with the Atom. Dell hindered their min-12 by putting Vista on it, from the standpoint of cost, memory use, and cpu power.
IMO, I'll draw the line at 12" for a netbook, and WinXP or maybe W7 for it. No Vista and nothing bigger than 12".
Personally I think I would be happy with a 10" netbook and XP.