It may not be as bad as you think. Full HW / Flash support is now out http://www.engadget.com/2010/02/24/flash-10-1-beta-3-released-adds-support-for-intel-gma-500-and-a/
Yeah, I'm well aware... I still wouldn't call their results with HD playback "satisfactory":
http://techreport.com/articles.x/18065/1That's what it gets with ION. Intel's steaming pile known as GMA 500 results are decidedly worse. I have a supported EeePC with an older Atom, but with GMA 500. On THAT machine, 10.1 brings it up to the quality level I described.
480p video is basically perfect (often unwatchable without 10.1 acceleration)
720p video is tolerable in a window (if you lower your standards a smidge), perfect fullscreen (unusable without 10.1 acceleration).
1080p video isn't tolerable. Certainly not by my standards.
But that's on a netbook with a decidedly larger form-factor. Just because it is called GMA 500, doesn't mean it is clocked the same. Intel allows wide leeway on the clocks on those things to hit thermal targets. One is not the same as the next.
So, I'd wait to see more data and tests before jumping on one of these. Plus, Asus is probably going to put out their own version in a few months, which might be a better price.
I still don't think Windows 7 is ready for a touchscreen environment. But it COULD really work as a HTPC remote control. With VNC and something like AirMouse? Heck yes.