With the success of computers like the Nokia 810 tablet and Asus Eee, we are starting to see $400 computers that meet the day-to-day computing needs of a large market. I hope computer vendors are paying attention and start making smaller, cheaper units with longer battery life and far better reliability. I'd trade that for more power almost any day.
What do most people want? My guess is a basic word processor and spreadsheet, wi-fi, and a web browser capable of watching YouTube. Unless you're doing some kind of power-intensive application, most everything else is just over-priced fluff. No wonder the Asus Eee is so popular.