It seems useless.. especially if all you can really do with it is browse the web, use it as an e-reader, and watch some videos.. at least for $500 it does not seem worth it at all.
I paid $579 for an Asus U81 14" Laptop... Core2Duo T6500, 4GB ram, 320GB HD, Win 7 64-bit, WLED display.....and it's even faster than my desktop....why should anyone pay $500 for a 16gb near-useless device...
I think Apple's just doing whatever they can to hit the cheaper-market segment and put a dent into the netbook buyer market...I just dont even see this competing at the least with an ION netbook though... IMO this was a stupid idea on Apple's part...
I think I'll be buying an ION netbook over this garbage.