Paul Thurrott's Super Site has some thoughts on the second iteration of Microsoft's "Origami" initiative. The first one was a real yawner, though I found reason to be optimistic over it's possibilities. Since then, Microsoft has obviously been hard at work to counter all the competing schemes, such as Nokia's Internet Tablet and the Asus EeePC.
Microsoft is not going to take the success of those other sub-notebook devices lying down. They're obviously on a war footing over this one and I think they might just put out an OS and software for some compelling machines this time around.