Today, sellout.woot.com had a better version of the ASUS EEE PC900 for sale. It was a 900A at $160, 10 more than I paid. For that you get the MUCH better Intel Atom 1.6Gz proscessor and twice the RAM at 1GB. Still a 4GB drive, no webcam, and still installed with Linux.
The Atom processor is faster than mine, and uses less power, so figure 4 hours vs 3 hours of battery life on mine.
I considered buying one and giving my 900 to my dad, as I think it'd be perfect for him given the appliance nature. I may still do this and buy something else.
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