I think most users want something like a Google managed Android netbook. Just give them something that works, where they don't have to worry about compatibility issues, DLL hell, viruses, and malware. The vast majority of users would love that.
Yes, but Android doesn't use straight up Java, especially in terms of its GUI code.
I could see the appeal of the 'slimmed down' system, but I suppose we'll have to see what sorts of apps are created for Android, whether they're useful in something that's significantly different in terms of form factor. Good apps should be able to handle it, but it could be that what's good for a quick whirl on the phone is seen as a not so serious app for a computer that people actually sit down to use.
What is cool about it is it shows how cool Android is, and how people will end up doing innovative things with it.
However the 1.6GHz Atom processor is fast enough to handle full screen flash video. Mine currently has 1Gb of ram and can run Eclipse plus the Android emulator at a pretty good speed. Compilation is noticeably slower than my MBP, but that's about it.
For the record it's running Ubuntu, with some of the netbook remix packages installed.
how about a version of OpenOffice with phone features, such as teleconference for presentations (yeah, crazy thought, but you get the idea)?
The problem with running "other code" (Open Office, for example), is that all graphics have to go through the Android interface - the whole GUI is done with Java/Dalvik. That might make it difficult to integrate other programs.