adf -- that's a really interesting theory and consistent with the products and the uses that I've seen these things put to.  Interestingly, I found myself comparing the UX to my Blackberry this morning, just randomly thinking, and found that the BB won hands down in the necessary respects... i.e. I can actually type lengthy emails on the thing if necessary, and it only costs $100.
speculatrix, may I henceforth refer to Vista as "(spit) Vista" in my written communications?  That's awesome.  I saw a brand-new notebook with decent specs die on the altar of free-upgrade Vista.  It was horrible, but if XP or 2K had been loaded on the thing...  Anyway, the moderately non-techie owner returned it.  (!)  Not fast enough for him.
You know, Capn_Fish, I enjoyed Ubuntu for all its great facets, but could never reconcile myself with the resource hogging.  Compared to Slack or Gentoo it just seems a bit... not bloated, but heavy.  I guess that's the Gnome talking.  Last time I gave Fluxbuntu a shot, though, it was a mess.  What's Xubuntu like first-hand?
And lastly, desertrat... yep.  Although there's lots of modern software that won't run on 98.  I'd recommend 2K, which is what most of my machines run.