A netbook is a small, no-frill PC; it's not for 3D gaming (not all games have to be 3D), it's not a portable DVD player (that's what portable DVD players are for), it's not for intensive office use; it's a small Web appliance that works with PC elements and can connect to pretty much anything.
I have one; it runs a Linux-based distribution. It runs Quake if I want to frag. It runs OOo if I want to "be productive". It runs several PDF viewers if I want to read stuff on-screen (and most models have very good quality screens). It runs Firefox if I want to browse the Intarweb. It has terrific Wi-fi, Bluetooth and 3G capabilities in that regard.
And it fits in a large pocket without costing more than I earn in a month.
Thus,
- it can kill time with whatever small games you fancy, like a phone or that huge workstation you use to play Minesweeper (except that the small keyboard may allow you to play pinball better);
- it can open and edit any office document (that includes CAD, POO, or ray-tracing scenes if such is your line of work) you throw at it, if for whatever reason you forgot your 4kg laptop but have your document on a USB key, something your phone certainly can't do;
- it can playback movies like DivX files or backed up DVDs, if you don't feel like lugging around your portable DVD player, something that your phone can't do satisfactorily (a netbook's screen is bigger);
- if for any reason it craps out, you don't HAVE to bring it to the shop for a fix, as standard PC tools will do just fine (interestingly, due to the abundance o Linux-based netbooks, I've found netbook BIOSes and hardware interfaces to comply with standards and specs better than any costly, beefier laptop - apart from Lenovo ones maybe - which makes fixing them a snap).
That current netbooks are still using not-exactly-appropriate hardware is one thing, that Nvidia and AMD (certainly AMD) are better positioned than Intel (or Via) to solve:
- Intel graphics are lousy, the Atom is no winner, and the chipset sucks. However, you can run Linux without trouble on Intel hardware, all drivers are free;
- Nvidia doesn't manufacture i386-compatible chips, but could make good chipsets and terrific graphics. Graphics drivers aren't free though (but high quality and well supported)
- Via graphics are currently worse than Intel's, but their chipsets and x86 chips are much better; they're in the process of writing a new driver, with hardware video decoding and 3D support
- AMD is like Nvidia chipset+graphics-wise, but on top of that they have very good x86 chips, and since they free their GPU documentation almost as fast as they create new chips, they don't have much to fear from Intel support-wise.
In fact, the most surprising thing I've found in this article is high, ringing praise to Ati/AMD from Nvidia's CEO!