I think the industry needs a standardized and regulated definition for "netbook", in much the same way that there are standards that dictate the classification of a car. In may ways, this is similar to what's happened to the Honda CR-V, Toyota RAV-4, and the Kia Sportage. They were originally intended as economic, no-frils, compact SUVs—and now the RAV-4 (or was it the CR-V, or both?) offers third row seating. This was a class of SUV that originally competed with the Suzuki Vitara/Sidekick/Geo-Chevy Tracker and the Jeep Wrangler, mini-utes, the whole lot of them, many of them with ragtops, no less. They've lost sight of what they originally intended to create. The Honda Fit/Jazz, Honda's entry-level sub-compact, is in fact larger and more powerful than the first-generation Honda Accord, whose successor is now within a stone's throw of Large Car status, a segment housing the likes of the Dodge Charger and the ancient Ford Crown Victoria.
People are always going to demand small and cheap, and when they get it, they want something just a little bit bigger, and just a little bit higher quality (and consequently, more expensive). That turns into a vicious cycle, the grass always being greener on the other side. They go bigger and better until they realize that it's too big and they decide to further downsize from the (now super-sized) "down-sized" option.