The bit about the netbook was from me, not the book, FWIW.
The viability of the netbook in the mid-90s is academic, and it's hard to make a comparison to the sub-notebooks, because they are such different things: their target audience is wholly different as well as the product. The /. article summary asserts the netbook craze started in 1996, which would seem to be just false. While the subnotebook was "received" perhaps in the same sense that the New Coke formula was, more traditional options seemed to reign for the next decade without so much as a second thought from consumers.
Forgetting the price, which we all know is impossible to make work adequately outside of building the netbook in the very near past, the product of a current-gen netbook would be hardly successful in the mid-90s. The specs might be technically superior, but what consumer programs would come close to taxing it? (IIRC we were just crossing into P100 procs at that time, and 32 MB of RAM was a lot) It may have wi-fi, but nobody else does. How many even had USB 1.1 back then? Where are the serial and parallel ports and modem?
Even if you could surf the internet, there isn't much to do after maybe viewing some spartan web pages. It's a far cry from the rich multimedia experience that we've come to expect, with Javascript web apps and Flash videos, we can move our computing selves into the internet and use the lightweight netbook to access all of it. And when I say "we," I mean the general consumers that are increasingly buying netbooks recently.
And that's all from a relatively recent time period. Take it back further and it gets more ridiculous.
All of these issues could be solved, but with much more work on the developing company's part than current netbook makers have to do. The culture is vastly different and its acceptance levels are just ripe for netbooks and smartphones without much, if any, priming needed. Consider how much usability training you've received in the course of the last 12 years perhaps without even taking a single course on computers.
But the real message of the book to me is that the value of innovation goes down as public acceptance goes up. This is for the very same reason as why it's so easy for a company to create those products. The tide affects all of the ships, including those the companies competitors. The relative value of your innovation is dependent upon your ability to increase the perception of value of your idea to your audience. Take now as an example: for better or worse, much of the tech economy is based on "free" in all senses of the word. Innovation today has to keep that in mind and work that into their perceived value marketing.