The netbook catagory will split.
I think that the category of machine will split in two by next year. We will have:
1) Mini notebooks with a screen size of 10 to 12 inches, an HDD, an Atom or Nano x86 processor, about 2 Gbs of ram for a price of around 400€ or more. Most of these will run Windows 7 home and a few will run Linux. They will be aimed at people who want a full x86 computing experience on the go.
2) Real Netbooks with a screen of 5 to 9 inches, an SSD, and ARM processor, about 1 Gb of ram and priced around 200€. these will run Linux or Android with a few machine going for Windows CE. they will be aimed a people who want a machine to surf, listen to music, watch SD Video and do basic office tasks on an expendable, very portable machine with a long battery life, even if it means they don't get the full computing experience they are used to.