CNET:
“It seems that customers prefer to have a greater screen, which also means a larger keyboard,” Jonney Shih said. “I still believe we have a good opportunity in 8.9-inch for kids, telecoms (providers) or emerging markets. The 7-inch (Netbook) is going to be phased out, although some emerging countries may still have some demand.”
No big surprise here. I think that 9–10 inch netbooks hit the sweet spot.