We just bought an ASUS eee PC for one of our sales reps and I must say I love this little thing, despite it's flaws.

Yeah, the keyboard is tiny, the battery only holds up for 3 hours per charge,  the spacebar key is unreliable (my biggest qualm UPDATE: Fixed the space bar using this easy tip) and the trackpad button is hard as rock to push, BUT considering it comes with 3 USB ports, a built-in microphone and speakers, a SD card slot, a solid state hard drive (albeit only 4GB), boots very fast, has a rock solid and easy to use linux-based OS (which is more fine tuned than I would have expected), is unbelivably tiny and portable, comes with great preloaded software like OpenOffice, Skype, the Pidgin IM client, some cool games, Firefox, Thunderbird and many more, and prices in at about $350, it's got a lot of bang for the buck.

It's the perfect machine to surf with in your living room or at a coffee shop. Although I think a cheap USB keyboard and mouse is a must if you are going to be doing much typing. The processor is pretty slow, but the Linux OS is very responsive, so it's not really an issue. Although you won't be doing any video editing or hard core gaming, with more and more apps going web-based, like Google Apps and Picnik, I can see that low end, low cost, ultra portables are going to become more and more popular.