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Probably not. Do people really want to carry around something that's not pocket-sized and can't run general purpose software? Probably not. Do developers want to write an iPhone app AND an app for one of these? Probably not.

With no software, this won't work.

Besides, why pay the Apple tax when all you need is a web browser anyway?

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I can't think of a better time to pay a premium for excellence in user interface design than when my physical user interface is constrained.

$1M/day in sales at the iPhone app store (august data) suggests people want more than a web browser on small devices.

I don't think Apple would sell a "badly wounded MacBook", I think they'd sell a "premium communications solution"... either way it would be the same hardware.

The general purpose software problem quickly goes away when we consider online apps like Google's suite and whatever webversion of iPhoto, iWork etc Apple would come up with. Developers may not want to write apps for both an iPhone and a netbook, but they will if that's where the audience is.

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