When Gigabyte released their first UMPC, the U60, there was plenty to like, including the split keyboard. With the M704, Gigabyte is essentially releasing a refreshed U60 with a new look, a slightly bigger screen and a beefed-up processor. The second-gen UMPC will have a 1.2 GHz VIA processor, 768 MB of RAM, 40-60 GB HDD, a 7" screen and a three-hour battery life. Availability and pricing for the M704 is still hazy at this point, but I wouldn't be surprised to see it priced in the same range as the U60. [Crave]
@Maark: True, agreed. Except that the Eee really does have (close to) the size/heft of many of these UMPCs. Compare the (form factor) specs against the Gigabyte again. And many non-techy people won't make the distinction that many of the UMPCs are hugely superior in terms of specs. They will look at the price point and say "why pay more?". I picked up my Eee on the first day available, and showed it to a bunch of people at work over the next few days. 5 to 7 people have bought Eees as a direct result of that exposure. And we're talking all audiences, from IT to just-about-retired non-IT. There will likely be another (up to) 10 Eees under Christmas trees, also as a direct result. I have never seen this type of response to a technology item. A lot of "that's cool", yes, but not so immediately translated into purchases. UMPCs tend to be aspirational, whereas the Eee has become immediately actionable. Yes, it's not a lot of computer, but it appears to offer a lot of (or a very little of — from a portability perspective) computer for the price. Throw in some extra RAM, a USB HD, a PCI Express flash HD upgrade, and the OS (practically) of your choice, and you're still ahead of the game.