Hardware's Race to the Bottom

I've written several times about the importance of the Asus Eee PC; here's another way of looking at it:

At Sony's annual Open House event, Sony's IT product division senior vice president Mike Abary said if the Asus Eee PC starts to do well, it could potentially shift the entire notebook industry into a race to the bottom.

If mainstream PC buyers start to find their needs met by a lightweight, simply featured, inexpensive portable, it's likely to impel all of the major players in the industry to pile on by lowering their prices.

This, of course, is precisely what open source has done to proprietary code, so it's interesting to see the same happening to hardware, again driven by free software.