Netbooks Hurting Notebooks; Will They Also Kill the MID Market?

It’s already safe to say that netbooks are taking a bite out of notebooks. Windows XP is on the majority of netbooks and Microsoft has already seen a decline in OS revenues because they can’t sell a $300 operating system on a $300 device. Add in the worldwide economic crisis and you’re seeing some people opt for cheaper computers that can handle most everyday tasks.

What about the MID or Mobile Internet
Device market? I’m of the general opinion that the main difference between the MID and smartphone market is that one offers traditional voice calling and one doesn’t. Neither device runs a fully-scaled desktop OS and frankly, neither should. Yet both handheld devices are highly portable, offer web browsing and are in the same general price range as netbooks. So could the netbook start eating into the MID market which got off to a relatively slow start before netbooks even arrived?