As an aside, I've just seen some Google Android netbooks (7" and 8" screens) on the US Ebay site at prices ranging from US$ 110 to US$ 170
($110 was inc delivery but add $20 for 3-5 DHL instead of 10+ days)
0ne listing was for an "aPad" ("EKEN M003 MID" might be enough to find this one) at $140 + $30 deivery (less 1c for each price!) and offering a protective leather case at $12.99 when bought with the aPad.
Device has USB, Wi-Fi, support for up to 32 GB SD card, and internal storage of 2 GB (though 1 GB is taken up with Google's OS. Included are various apps for e-mail, browsing, Google Maps, Calendar, etc.
Also handles MP3 audio, video: MP4, AVI, Flash, 3GP (used on some mobile phones), WMA etc. Plus an office package to handle Word/Excel/Powerpoint, also support for PDF, MSN, Skype, and Windows Media.
Screen is 8? 16:9 wide-screen 800X480 high-brightness TFT LCD which supports switching from portrait to landscape.
At about 100 pounds, I'm sorely tempted. For a family, it is almost down to a price affordable for each child (OK, depends on circumstances, but lower cost than most laptops and certainly more affordable than iPad).
Oh, almost forgot, eBook reader is included. Not sure how interesting that is for people, nor whether there would be any restrictions on formats supported, but Google would have a vested interest to make it handle as many options as possible (as they have been pushing "open source" and "open access").
EKEN M003 MID - found on Ebay UK at 108 to 125 pounds. Most from China, some from HK, one supplier from Singapore.