It isn't a bad price at all. I can configure a model with the N280 processor, 6-cell battery, and 160GB hard drive for $399 (their their academic/government discount program). They also decreased the price of the Mini 110XP. I can get one of those for $360, $40 less than what I paid for it back in August. I am not sure how HP is able to offer their ION netbook for that price as other companies (Samsung comes to mind) are charging $500+.
At least HP is out there offering HD capable netbooks before others (aside from the VIA packing Lenovo 12.1" not-a-netbook netbook). It makes them stand out from the generic Atom N270/N280 - GMA 950 crowd that fill shelves at stores such as Best Buy, Costco, Walmart, etc.
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