An extra inch of screen diagonal is great, of course. But it usually means an extra inch of notebook. They should just take the old netbook form factor and build in a screen that goes to the edge (keeping the bezel very thin).
Also, I think vendors used the switch from 10" netbooks to what we have now to raise the price tag unproportionally.
They could probably build something with a touch screen, detachable keyboard, HD video playback, all day battery life, that could run circles around every netbook, and sell it at around $350 (or even cheaper without touchscreen, and with a fixed keyboard). Instead, they slap in a i7 and 8 Gigs of RAM, that most people won't use anyway, and sell it for twice as an "ulrabook", because there's more money in "premium"...