That's almost exactly the machine I got and I love it. I guess you have to decide what you want it to do though. I've been using netbooks/UMPCs/Palmtops (they think of a new name for small computing devices every year
for a decade at least, and so far the Dell Mini 10 has exceeded all my needs/expectations (it's venturing on too large for my uses, but I think as long as they don't get much bigger, this is ok).
It does everything with the 1 GB of ram I could want: word processing, movie watching, TV, music, net surfing, reading PDFs (scientific journals, even ebooks), even limited Photoshop. Granted it won't be a Photoshop powerhouse, but I like to edit on a big screen anyway. The HD Screen is awesome for looking at photographs though. The build quality is way better than my EEE PC (it's one of the first ones). I think this thing could take some licks.
Reading how much people here hate the mini10 I was a bit afraid that it was going to be awful, and I've only had mine a week, which is not really enough time to really break it in, but so far I love it and haven't found one thing it cannot do to my satisfaction.