I remember the last time I got a "Netbook" this cheap, was at CVS (regional drugstore), and it was some RCA crap made in China that had an ARM CPU, like 512MB of RAM, and Windows XP Embedded. It was a pain to use, and the internal storage memory corrupted itself partway through my vacation. I had purchased a "real" laptop while on vacation that summer too, and I found that I could get more real browsing done on the "bigger" laptop, than the little CVS / RCA netbook "toy", even though the battery life on the ARM device was better. This is because loading pages on the ARM device took like 3-4x longer than the real laptop.
Edit: For $120, this is really a milestone in terms of computing power, IMHO. But the big PC OEMs had to do something to stave off the "Chromebook invasion". Personally, I don't use Chrome, and can't really stand Chromebooks (I don't consider them to be "real" laptops). But this is great!!!
I also picked up some 64GB Silicon Power microSD (HC, XC, whatever flavor they're selling these days) at Newegg for like $16.xx after promo (10% off).
Edit: Plus, this little red + black Netbook is just sexy.