Whn I bought the iPod Touch I realized that it was such a powerful device that it does a lot of the work that people would buy a netbook to do! The iPod touch has one of the most powerful Email, web browser and note application. The only thing that it does not have is access to Cloud services like Google Docs, but that could easily be done with software and could make the iPod Touch a full replacement for netbooks. One advantage is that it has is that no netbook can do is it’s size, the iPod Touch is pocket size and because of that it can go anywhere without having to carry a bag. The iPod Touch also has thousands of Applications that can be installed over the internet and give the users access to many more features for the iPod Touch.
There have been rumors floating around for the past year or so about Apple putting out a netbook, it makes sense however, they already have a mini netbook. However if they release a netbook I think they will use the iPhone OS because it is simple and powerful and well developed instead of OSX which can be complicated.