There is a ton of messages regarding how this or that apps would be available but not practical due to resolution/CPU power issue.
Well, I have a EEE, which have a lot more central memory, true, but same rez and close to same CPU power.
It's running a full blown KDE without any significant CPU usage (hell, it's not like Pandora/EEE are based on Pentium 1 !), and apps such as OpenOffice are fully usable.
And don't stay storage is an issue, I only have 12 gigs on the EEE and never felt limited (and I've installed a whole lot of emulators and old windows games through wine, Half Life 1, Daytona, games of the CD area !). Given that the Pandora is double slot, and the price of SD cards nowdays, anyone would have a minimum of 16 gigas on their machine I expect :
http://www.7dayshop.com/catalog/default.ph...EARCH&comp=
Hell, for £60 you could even have 32 gigs of class 6 memory ! That's like, 50 standard CD-sized divx if you think about it.
We're just all so used of our unneedlessly absurdly powerful computers, that, while being nice for compilation time or modern gaming, are really underused for everyday use. You pretty much can expect the Pandora to do everything you do on your regular comp.
Regarding flash, don't forget there is an open source flash plugin already (gnash). Sure it doesn't play complex flash games, but it already plays video nice (youtube works), that's good enough to me, I don't play dofus !
Btw, while 128 megs still is quite limitating (it wouldn't be for a regular handled, far from it, but if you start loading a full linux distro with Xorg, KDE and so...), with good high class SD I suppose using cache would be less penalising performance wise that with your regular 5400 RPM laptop hard disk.