We have seen dramatic increase in mobile hardware in the last 2 years. If you asked someone (even a dev) 2 years ago if N64 would work on a phone they'd just laugh
What MeeGo is doing is paving the way for tomorrow, not focussing on today.
Just like how Apple came to be, they just did what others did (Apps, UI) in a better package and stole WinMobile's market ...
Against Apple, it must show that MeeGo is sexy
Once they really polish the whole package (software/hardware), demonstate its advantages (against Android) and give it an equal sex-appeal it will sell.
We may even find those first-gen netbooks (replace XP/Ubuntu) useful.