Initially they started with aiming the price to be $100 per laptop.
Practically that was not possible. So they started with $200 per laptop.
It had Linux that didn't cost anything and was completely opensource.
Asus took over with the EeePc's and where the first to use a Xandros Linux, which was a hybrid of a debian based Linux and the taskmanager of Windows.
MS got about $10 per licence for that (I heard).
This is where everything went wrong. Slowly laptops with Windows XP where released, but the SSD drives (2GB/4GB) of the netbooks where too small to host the OS.
So they increased the SSD size, as well as improve the looks.
Added a webcam and upgraded from 0,3 to 1,3Mpix cam.
Upgraded RAM from 512MB to 1GB, as XP needed more ram to function better.
They also addressed and improved the SSD's speed,because Windows had more file activity in the background.
Slowly but surely those $200 laptops became $600 laptops, and the reason why people wanted to buy them vanished (as being cheap desktop alternatives, or cheaper than laptop 'toys' to play around with).
I got angry at the pricing policy beginning of 2008,which just became too ridiculous! From there on people started noting that a laptop that's often 2-4 times better in CPU speed, RAM, diskspace, and screen size was sold for the same price!
The Atom processor that costed $5 to produce was sold for $90.
And MS still found a reason to keep Windows XP, a dying OS, that microsoft wanted to quench in favor of it's (by then) powerhungry 'flagship' of unproductivity, alive, and sell it for $35 or something per laptop.
It is MS that caused the mini netbook sector to grow, but on the other hand, it was also the reason for netbooks being more than twice as expensive!
If it was up to Linux,netbooks would function perfectly fine with an Atom, or even a downclocked Celeron M processor, 512MB Ram, and 4GB SSD.
The subtle increase in OS had a double of price tag as result on these machines.
Now Netbooks with Windows 7 need to come with 1GB of RAM at least, and an 8GB SSD(if you want to install anything else but Windows on it).
Probably the battery life will suffer with 7 as much as it suffers from XP compared to Linux. Generally, with the same powersettings Linux can handle 10 to 20min longer battery life than XP on a 3,5 to 5 hours charge. Same probably with Win7. And Win 7 will need a larger battery, but since the density of batteries are about as dense as they can get, those batteries will become larger, forcing the notebook to become larger (than 9"; eg: 10 or 11"). Add the price of Windows 7 for netbooks and your Win7 netbook will end up being bigger in size, hardware, or lasts less in battery, and costs more!
I expect Windows 7 netbooks to cost at least $50 more than current Atom netbooks.
Then the newer chipset (CPU + IGP + memory controller on one chip/die), which seems the 'perfect' solution for the lagging Atom/GMA chipset, and your netbook will cost you $600.
And no person is going to be able to do anything about that... They've lost the original idea of building a $100 laptop, or more practically a $200 per laptop!
One thing is for sure, whatever OS comes on my netbook, I will go with XP!