If this new Netbook is 3x5x1 and that's INCHES, then it will not replace my HTC P3600 (PocketPC). I doubt it is that small so it will not replace my HTC P3600.
If it has the capabilities of my notebook then the Netbook would be good replacement for it.
Since, the HTC P3600 replaced my phone and PDA. The PDA replaced my paper Daytimer. I fully utilize Outlook for its calendar, email, contacts, notes, tasks, Internet Explorer, Media Player, Word, Excel, and PowerPoint. I can easily take it everywhere comfortably. Plus, I have other programs for expense-keeping, Bible, French Dictionary, Mobile blogging software and Skype. It has WiFi and 3G connectivity. Also, I have a portable bluetooth keyboard. Therefore, the HTC P3600 is my most useful and indispensable device. Of course, it sync'ed and backed up with my Notebook daily.
Although, the HTC P3600 is pricey ($500) but it worth it. I needed the quad-band phone connectivity for worldwide use. Therefore, other HTCs (Tilt or Touch) are available for $200-$300 from a phone carrier.
Keep your Netbook on the drawing board!
The Netbooks are coming: Laptop cannibalization today; Smartphone war tomorrow? | Between the Lines | ZDNet.com.
The conundrum: Smartphones are beginning to occupy the same turf that Netbooks are targeting. Communication devices (phones) are morphing into full fledged computing devices and computing devices that are becoming communication tools. Meanwhile, both categories cost about the same. So Mr. and Ms. IT buyer what's it gonna be: Your iPhone or a Netbook? These categories are meeting in the middle and these devices will increasingly become comparable -- especially as phones are used for data more than voice. Perhaps you'll buy both types of devices, but I doubt it. Can you really lug a laptop, smartphone and mobile Internet device around. Will you leave your laptop at home for something that has less computing power? How many devices -- even at $399 a pop -- will you choose to own?