I very much disagree.
My wife got a new Lenovo IdeaPad S10 a couple of weeks ago. Despite its pink exterior, I've taken the liberty of playing around with it a bit. It came with the standard Windows XP Home that most netbooks come with, and I installed Ubuntu 7.10 and the public Windows 7 beta.
The Windows 7 beta performs far better than the pre-installed Windows XP Home - even after removing the factory installed junk - and the user interface is much better suited for the small form factor than XP is. My favorite example is how they made the task bar better suited to being placed at the side of the screen instead of the top or bottom. On a device with a resolution of 1024x600, this is the kind of minor visual tweak that makes the system much nicer to use.
I've already decided to shell out hard-earned cash for the Windows 7 once it's released, which will be the first time I've bought a boxed version of Windows. My wife dual-booted between Ubuntu and Windows 7 for a couple of days (she's not technical at all, so I'm as shocked as you are that she even accepted my suggestion of dual-booting) and ended up sticking with Windows 7, because "it's faster and easier to use than the other one.. besides it's pretty!".
No, I don't have any relation to Microsoft. I just think Windows 7 is really looking quite good so far.