I wonder why Microsoft and Intel put restrictions on portable computers classified as netbooks. Windows XP and 7 Starter both have a 1GB RAM limit while they had hard drive capacity caps as well: 160GB and 250GB respectively.
I think that, back in the day, they were trying to make a clear and distinct line between netbooks and notebooks. However, both Intel and AMD have been preventing this. Intel keeps putting out smaller and smaller ULV and CULV single-core and dual-core processors that are almost as small as the Atom N450 while AMD is doing everything in their power to do the same with their AMD Athlon Neo and ATI HD3200 series.
I keep saying that one day, there won't be a large, clear line between netbooks and notebooks. Netbooks will eventually be absorbed into the ultra portable notebook category as both Intel and AMD will begin making even better low voltage dual-core CPUs that dinky Atom series will no longer be needed (in terms of cost, electrical consumption, heat production, and power efficiency).