Netbooks have their place, and I have purchased some for a few of my users. They are most definitely not for everyone. The tiny screen and substandard keyboard are the two biggest reasons not to get one. I have typed on 10" models, and find them very limited for my big hands. The tiny, low res screens are also a drawback as you end up doing a lot of scrolling. The processing power is certainly very limited, and even a very low end laptop will easily run circles around a netbook.
Assuming a price point of between $300 and $400 dollars for a good netbook, you could shop around and find a pretty decent small notebook for about the same price. Yes, the notebook will be heavier, but having a 13" or 14" screen makes a huge difference, not to mention a full sized keyboard, optical drive, and a real processor. Battery life is better on the netbook, but a properly set up notebook should still last for a typical day of use.
I went through this process for myself a while back. I really wanted a netbook, but after weighing the advantages and disadvantages, I ended up buying a 14" notebook instead, and have not regretted the decision.
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