Gee whiz gang, the thing is just over a $100 and in an extremely small form factor. Enough ports to hook up all your old periph's you got hanging around the house. Internal wifi.....
My daughter, 13, does email, low intensive games, music video apps, and watches TV / youtube all on her iphone. She wants to learn how to type, and get some windows experience. She can handle a 22 inch screen in her room, wireless keyboard with some mouse function on it, and thats it Any thing else in her room will be "ugly." This is perfect. She wont even see the dang PC.
Its about hefficiency (heat, or power which equates to small form factor), price, and plenty of IO's. I mean, look how dang small that thing is, for all it can do. The ATOM is hell'of'an efficient architecture.
I think Intel has the horsepower thing already figured out. Who knows why they call it an I5, but would anyone with a half a brain think they could get a I5 with its chipset, all other necessary chips, and WIFI running cold enough to fit in that small box, not to mention at a $100 including a windows license.