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No doubt it will be a windowing system optimized for showing exactly one full-screen "window", and perhaps occasional modal dialogs.

I believe both Qt and GTK+ can be compiled to draw directly to the Linux framebuffer, if you don't want to use X (although they don't exactly provide much in the way of window management).

Yes, they can, but it is not as robust as X. Now and then you have to reboot the whole OS to reset the windowing system.

Is there anything better than X to render stuff to using Qt?

You could still use X with just window manager optimized for fullscreen like in Ubuntu Remix.

Yes, as soon as it becomes open source later in the year. I'm not sure how fantastic it would be, considering it would be Yet Another Windows System which only runs on these netbooks.

Instead, I'd be really impressed witha good windowing systems impemented using the canvas tag, something like:

http://research.sun.com/projects/lively/

I think Lively uses SVG, not Canvas.

If it frees us from X, that would be an improvement - I am holding my breath.