hmm, when I think of sub-notebooks I always think of something the size of a Toshiba Libretto (or the Eeepc, since the Libretto is rare), IE something you can actually type on if your fingers can get out of their own way.
The palmtop or PDA size clamshells are really too small to do this on. If they can't use a larger keyboard for extended typing jams then I don't see the point. (I doubt that device supports any external devices, besides the touted BT internet)
For $127 I think it may be neat, but I have my doubts as to internet use, can it even play Youtube?