Many of them still do. In fact, some of them are also loaning Xbox 360/PS3/Wii games as well.
Well, that makes things easier for sandworms.
I installed Arch on my 701, and I have been really happy with it so far. I only have what I need installed on it, and the thing boots in like 20 seconds. There is actually a good article in the works on the Arch wiki on how to set it up on the eee. There are custom kernels that are ready to go and everything. If you know your way around linux good enough, I would recommend giving it a try.
It's amazing how much the 2nd one sounds like Randy Newman.
What cat is this one going to be, Ocelot? Domestic Shorthair? Mau?