It's doable, but it's be slow. And what happens when you want to install something? It's simpler to just keep an OS on the host.

And yet Netbook manufacturers continue to hobble Linux systems with lower specs than the Win versions. When I buy my second netbook in twelve months (in the new year), i'll get the best spec/price ratio, knowing full well that I can wipe Windows and put Ubuntu on it for no extra cost.