This device seems to fit an awkward niche... It's small, but still can't fit any but most generous pockets. It made a lot of sacrifices to be made this small, but because of the two-part form factor and lack of touchscreen it still can only be used sitting down like a standard laptop. It has a hardware keyboard, but apparently (haven't used one) the quality isn't great. It has a 7" screen, but the resolution is not enough for an extended amount of work or play...
IMO it seems like a good compromise. I've used pocket-sized internet devices such as the Nokia N800 and couldn't get used to the small screen and lack of physical keyboard. I actually thought the 800x480 resolution on the N800 was more than adequate for web browsing, but at 4.1" the text was too small to read from more than about half a foot away without zooming (and therefore sacrificing precious resolution). I would not want to cram more pixels into such a small screen.
This is why I am interested in the 7" 800x480 screen on the EEE. Because it is nearly twice the size of the N800 screen text should be readable from a comfortable sitting position. Also, a physical keyboard, even a cramped one, is much better than pecking away at a tiny on-screen keyboard.
What would make the EEE perfect is a higher-resolution 10" screen, but it sounds like that isn't going to happen anytime soon, if ever. That being said I'd probably still get the 7" if it was significantly cheaper than the 10".