Video: Litl Webook Looks Intriguing, But I'm Still Confused

In case you missed it, the Litl Webbook is a unique "cloud-based netbook" with only 2GB of local storage, a presumably Linux-based custom OS, and a 12-inch display that bends over into "easel mode." Here's what it looks like action:

This video from CrunchGear shows that the operating system is all about simplicity. From the cloud-based storage and OS updates, to the "Web Card" home screen tiles used to represent Websites. On that screen, there's no menus, no folders, no resizable windows—just Websites and a search box at the top.

Sounds like a great first laptop for kids until you see the $700 price tag. Litl points out it offers extras like a one year service plan, maintenance free OS, photo-centric features, a money back guarantee, HDMI output, and that unique screen. But I still don't know. What do you think? [Litl and CrunchGear]