Yes, it's over-hyped as much as the Razor was but these days every kid on our block has a Razor and plays with it and I'm sure the netbook will become just as ubiquitous.
No, it doesn't solve your problem but it's perfectly suitable in others; I have a 1005HA and love it! I use it primarily to write and when bored I can play Diablo II or even World of Warcraft. No, it's not going to play the latest FPS but I didn't buy it for that.