The thing is, despite Sony claiming its not a netbook, with the Atom processor, low amount of RAM (and zero hope of expanding it), and small harddrives, no one is going to use this as a laptop. The difference between the two being that a laptop has more powerful hardware meant to take on more difficult computing tasks, where as a Netbook is all about having the most basic computing functionality for only that purpose.
If this little guy had the 9300gs Nvidia graphics set, a P8400 processor and 4 gigs of DDR2 or even DDR3, it'd be more than a steal at $900 (given the small form factor) and have the computing power someone would want in the $800-$1100 price group. But with an Atom processor, no real onboard video worth mentioning, and low RAM and storage space, it looks, feels, and acts like a $299 netbook from Asus. Sony will claim that those do not have the larger solid state drives that its Vaio P does: but the larger drives would be there for data storage, and for large data storage you have a computer to either A) just store it (like a server) or B) crunch it and do something with it. An Atom powered computer doesn't have that capability.
This does make sense with Sony's overrall strategy though. If you look at the rest of the Vaio lineup, its not really priced against a competing HP, Gatewal, Dell or Toshiba computer. For the money a Sony commands, you can almost always find better hardware out there. Checking Sony's website and marketing material, Sony is much more about the "Sony Style" of things now. They aren't selling computers: they are selling "Lifestyle Accessories." Cutting through the rest of the marketing literature, it means that these items are intended to sell with people that have a desire to have the best of everything and back it up stylishly. In more laymen's terms: people with to much money, enough so to blow it on underpowered hardware without really understanding whta they are paying for, but will buy it anyway because it looks and sounds good. The "Sony" name is one that the company really wants to make premium, something people will pay extra for.
Me, I liked it better when they just mae good electronics at good prices, it wasn't about social class and status. But, if Sony wants to walk the line between digging a grave and gaining a profitable consumer base in this way, then more power them. I wish them luck.