Will this be an actual real computer which you can do whatever you want with, or something you can only install apple approved apps from itunes on?

My netbook cost $374 and I think it's great. You can always imagine that you need all the hardware and software (and more)that you gave all your money to Jobs for, but truth is you seldom or never use it (at anywhere near its true capabilities). It's like buying a Lamborghini and driving it in town. It looks great and has a lot of potential, and that's about it.

"We don't know how to make a $500 computer that's not a piece of junk."

Well, some does already.

That's funny.
I was under the impression they couldn't make a $2200 laptop without it being a piece of junk.
Other than having a smiling Mac logo instead of flag waving Windows logo - it's still just a bunch of hardware in a plastic case. Given that Mac has taken so long to decide they can make their junk smaller and cost less, i'm really not interested.

Here's my idea of how it could unfold, if it's even possible...

Since Apple these days usually launches these kinds of 'revolutionary' devices along with first release of some new hardware platform, I call Apple doing a netbook being the first to release on the Intel Moorestown platform. Much better performance than any existing Menlow netbook in every way - speed, battery life and cost (much higher integration than Menlow/Atom). Intel gets a tier1 partner for first release that is easy to control (locked OS + tightly controlled hardware platform), so its a worthwhile effort for them.

If that was the plan, I'd buy one. If it was just another Menlow-based (Atom cpu) netbook, it would hardly be worth the effort.

I believe I heard from somewhere that Windows won't run on Moorestown anyway... maybe I'm wrong?

Well the $100 laptop is coming, Apple Style. With hetherto unknown degrees of oppulance of packaging and casing, now ever child in the first world whose daddy hasn't been made redundant will be able to afford a laptop with the image of a peice of fruit carved on it's case by artisan child labour (or not).

One Laptop Per Child! Who would deny our children the opportunity to be the fanbois of tomorrow?

"We're too stupid to know how to make a $500 computer that's not a piece of junk. Give us time to catch up with the rest of Earth."

I'm sure it'll look nice and be light on features, although for once these attributes won't make it look out of place amongst other netbooks.

Let's hope that Jobs Mob doesn't miss the mark on the price point and features of this "Netbook" they are making. In order for it to be tempting, it has to cost $500 or less. $450 would be even better. If the thing can run ProTools, Logic Pro, or any other music recording software and has a decent amount of power and storage, I will not be touching Windows 7. If they do this right, they could put the screws to Windows 7.

"We don't know how to make a $500 computer that's not a piece of junk."

Honetsly:

"We don't know how to make a $500 computer with enough profit."

That's a cherry.