Obviously, you get what you pay for. But I think for families and other people that don’t have the cash to splurge on a high-end desktop or laptop, netbooks like this are great for removing the barriers for getting online.
Personally, I’d chuck in a cheap LCD monitor plus a wireless keyboard and mouse so you can use it as a desktop machine (and reduce wear and tear). Speakers or headphones are also a must if you want to listen to music or watch video. All up I think you can kit yourself out like this for about AU$360.
However, based on my own experience with a 3-cell battery on an Acer Aspire One, you also can’t expect to really use a low-end netbook like this as a mobile or commuting computing device. If this is what you want, then you’ll need to spend a little more on a netbook with a 6-cell battery.
Note: As the link appears to be broken, the model I’m talking about is an eM350 10.1″ Netbook with Windows 7 starter. Wireless b/g connectivity. 1GB RAM. 160GB HDD. 1.66GHz processor.