Proof of this is that many people are very happy with those underpowered netbooks. That need to run on XP since Vista is too much burden. Hardware requirements have hit a ceiling when you see Microsoft putting out an OS Windows7 that has lower hardware requirements than the one that came before. For the first time ever!! I still have high powered home built desktop computers with lots of memory and big LCDs but my low end Compaq laptop does most of what I need and flys on Windows7
Netbooks are fine for web browsing and email. But then, so is an iPhone.
Most people I know that bought netbooks have been sadly disappointed.