Leaks from the Pine Trail roadmap from Intel suggest that going forward, certain Atom processors may be allowed 2 gigs of RAM, a jump from the previous 1 gigabyte max instituted by Intel as a measure to prevent cannibalization between netbooks and processors in middle tiers. According to Fudzilla, the 1.83 GHz N470 processor will be the first, and will run between $300-$350. And if the rumor holds true, there will also be a 1.66 GHz Atom processor that will cost as little as $250. [Fudzilla via Electronista]
I don't think the problem was ever hardware-induced. Lenovo currently sells their S12 with 2 and 3 GB configurations with a vanilla N270 Atom CPU.
I believe that the problem really was ARTIFICIAL, with Intel not allowing manufacturers to include more RAM on these netbooks — which sucks big time. #intelatom