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"Microsoft, Apple, Dell and Palm hate Asustek because the company can give us something they can't: A super cheap, flexible, powerful mobile computer. At $299, why would anyone not buy one?"

One reason is lack of applications.  As long as all you want to do is basic internet and email, I guess you're OK.  What if you have an iPod or Zune?  What if you need Office?

And is it really "powerful"?  It has an 800 mhz processor, an 800 by 400 screen (remember 1988, anyone?) and a 2 GB hard drive.  Better not rip too many CDs.

The only eee PC configuration that makes sense is the $299 one.  Because, can't you already buy a Dell laptop for $499?  That has a bigger screen, faster processor, 80 gb hard drive, runs the applications you want, etc.  

Sure, the Dell is bigger, but if you're price conscious you probably don't have the money for a small, portable eee PC for Starbucks AND a regular computer when you need more capabilities.  I've seen plenty of people lugging around huge Dell laptops.  I'm sure they'd like something smaller but they wanted a cheap laptop for school, work, etc.

Apple's customer is simply higher end - they want to do photos, home movies or other types of creative projects.  And they want that Apple support (including free help and training at the retail stores).  Asus can't match that.

At some point, Apple's going to have an iPhone, iPod, and/or small tablet that simply connects to an external screen and keyboard/mouse and acts as a computer (either one that does basic stuff or even has enough power to run iLife apps).  That makes a lot more sense than a compromised design like the Asus (not small enough to be pocketable, not powerful enough to replace a full-featured notebook PC.

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Yes, you can buy a low end laptop with better specs for $499. But that's not the point. In this case, size matters. For a certain segment of the computing population, you get a laptop that is cooler, quieter, lighter, and smaller. Yes, it's less capable, but you can't have everything. I've lugged around heavy laptops for nothing except note taking and projecting a slide show. I don't need the extra power. However, like cesjr said, someone like Apple or Dell or whoever, will eventually make something better that is the same size. It will be dockable for those times when you need a larger display and keyboard, and it's capability will be good enough for most. In my mind it's just a another useful addition to the computing landscape that was waiting for the right point in time for the price/power/size to make sense.

Its a little known fact that ASUSTeK has the contract to manufature the Macbook...

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I think it's a perfect laptop to offer to a grandma to whom you want to send email and want to videoconf with. This thing should be pretty reliable, trouble free and virus free so peace of mind.

The answer is to buy the Dell and start lifting wieghts so that you little girls don't find your little laptops 'too heavy'! On the other hand, it is less expensive to read your news on the internet using one of those cheap laptops, rather than paying for a newspaper subscription. Of course, it seems as if you cannot do much more with it.

BTW, ASUS is one of my favorite mobo brands.

It has its limitations, but it's not that bad, especially considering what you pay for it. It has a lot of promise and they've already talked about future upgrades for it. People have already managed to run OS X and XP on it.

If Apple is supposedly angry at Asus, it's probably because rumors are swirling that they're about to introduce a subnotebook. If so, how much do you bet it will cost almost $1000 more than the Eee PC?