Sorry, I completely disagree. The iPhone was first announced two years ago. The EeePC was a year old last week. The netbook market exploded around the same time the App Store was getting huge. Obviously the netbooks aren't hurting from the iPhone.

I'll agree that Asus has completely and totally screwed up their product line. There must be something like 20 different SKU's of the EeePC. They recently released a sort of "designer" model that costs almost as much as a white MacBook. That's ridiculous.

But other companies are doing it right. The Aspire One from Acer is $350 for a machine running XP with 1GB or RAM and a non-solid state 120GB hard disk. That's a really attractive price, and [IMO] an attractive machine (though I'd be happier with black instead of blue and without that red ring on the corner). That kind of product exists in a separate market from the MacBook or the iPhone, and I consider it to be quite innovative.