Here they go for 100€ if you sign up for a mobile internet connection. They are advertised in all phone shops, so most likely everybody has heard about them. And yeah, probably the sales increase comes basically from these devices.
About needing a real PC... Does the "average individual" really need one? :)
For me yeah - I get friends/family of all ages asking about them all the time.
An average computer-illiterate individual might not know what a 'netbook' is but he/she can see a price tag ["I can buy a computer for $300" /think bubble].
At least two average individuals who have seen my Aspire One went out and bought one. I bet a couple more do the same soon.