Smackdown: Ultra Mobile PCs vs. cheap subnotebooks
Some of the reasons are obvious: Newer UMPCs tend to have better battery life and look sexier. On the other hand, other reasons are obviously debatable: their small size, while making them easier to stash, makes typing a pain.
I'm a big fan of UMPCs, but have come to accept that they're just not all that useful. The iPhone is surprisingly good at covering the casual side — and the productivity side (for me) requires more than such a little thing can give.
Follow the link to read the rest.
10 reasons why an Ultra Mobile PC is better than Netbook (and 5 UMPC recommendations.) [UMPC Portal]

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I think people will tend to get what works for them at their price point.
Sure, it's easy to SAY, "Just spend twice as much(or more) it's FUN!), but getting out your own wallet makes you think differently.
If I had the money for a nicer machine I wouldn't necessarily be looking at a lower end type anyway, would I?
I'm uncertain as to what the comparison is in this article since we're looking at such different price points on the machines being compared.