I don't really get netbooks either. My iPhone can mostly do everything that things netbooks can - But it's cheaper, smaller, and it's my cellphone. Sure, I can't write a paper, or write code on my iPhone - But if I was doing that i'd bring along my normal laptop anyways.
Exactly. The Netbooks (9" and under) are too small to be of any real use (like writing a paper) and are way to cumbersome to carry around unlike an iPhone.
But perhaps there is a use for them that all of us are just not seeing?