That's exactly what I was thinking too.

The EEE PC was supposed to launch for $199, which would have been absolutely revolutionary.

By the time it hit the shops though, the specs were severely reduced and the price was severely inflated. Here in Europe it costs nearer $450 for the cheapest model, and even in America I believe it starts at $300 plus taxes.

Either Asus completely miscalculated their manufacturing costs, or else they upped the price because of the sudden interest in their product. The trouble is, for a lot of people the interest was based entirely around the low price, so raising the price destroyed one of the main selling points.