If I were MS I would be real worried about this.
But then, I'm just a cluster geek.

me too, both ;)

Splashtop, if I understand it correctly quickly
launches a lightweight Linux capable of running
certain applications like firefox.

I treated myself to an asus eeepc recently - even loaded with all the stock software, the install consumes 650M. I think it's a reasonable point of comparison - you can criticize the eeepc (unimpressive battery, not many pixels, etc), but it's really quite useful. as a desktop, with a comfortable display and a normal amount of ram (incredibly cheap these days), and less speed/power compromise on the cpu, it would be impressive. easy to imagine working well for 80% of all computer uses. pretty disruptive...

come to think of it, Apple should be concerned as well, even if their
main market is >$1k pcs (other than ipods, of course).

obligatory cluster content: does anyone know how to go about scraping up $30k or so to buy ~100 eeepcs for a performance/installation
art piece?  the idea is to hang them throughout a hall, a wifi-connected
cluster that attendees walk through, interacting via webcam, audio, video.
call it cloud computing ;)
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