[SmokingJoe]

“A netbook that sells for $600-700, about 4x the size of an iPhone and running OS X will produce more profits than all the $300 netbooks in the world.”

And still get destroyed by Acer alone in units sold and market share., not to mention Asus, Dell, HP, etc. You got to generate sales to garner more profits.
In the just ended quarter alone, worldwide netbook sales went up seven times to roughly 4.5 million during the first quarter of 2009 compared to the same quarter last year, according to IDC. That alone is more than all Macs Apple manged to sell in the quater. Apple got none of those netbook sales, and that's why Asus has come from nowhere and overtaken Apple in laptop sales in just one year. http://www.macworld.com/article/140377/2009/05/netbook_shipments.html?lsrc=rss_main

“Once you have tried anything Mac, going back to Windows is just plain painful. “

Dream on.
90% of personal computer users have voted with their wallets and bought Windows PC'S instead of Macs. Worldwide, Apple Macs have less than 3% worldwide market share, so it's not like there is a whole lot of humans using Macs is there?
China will soon become the biggest personal computer market on the planet, and proceed to sell a heck of a lot more PC’s per year than the US, yet Apple Mac market share is tiny in that country because of high Mac prices. Netbooks will merely even strengthen the dominance of Windows PC’s.

The rest of your post is irrelevant, when the far bigger majority lower income folks in the US and in developing countries like China, India, Brazil etc can't afford to buy expensive Macs.

[conservatism_IS_compassion]

A netbook that sells for $600-700, about 4x the size of an iPhone and running OS X will produce more profits than all the $300 netbooks in the world.

the far bigger majority lower income folks in the US and in developing countries like China, India, Brazil etc can't afford to buy expensive Macs.

True. But a long time ago it was pointed out that there was inside of India a "France." That is, there were as many people in India who would be rich, or middle class, in France as there were Frenchmen in France who were rich or middle class.

The upshot is that as China, India and Brazil gain wealth they will also produce Mac customers along with huge numbers of commodity computer customers, just like here. So you can go ahead and cry (about people buying Oldsmobiles when you think everyone should have a Chevy) while Apple is laughing all the way to the bank.

BTW, when it comes to cell phones I buy cheap, not iPhone.