Ok, so Android is pretty resource saving. It is pretty impressive that it can display 720p videos.
It doesn't actually display at 720P but it can read from some 720P video files. There is no external display support, the built-in is 800x480. The mfg. website lists avi, Xvid, Divx, MPEG-4,and RMVB support.
Flash imbedded youtube video wasn't working in the installed version of Android.
It wasn't clear if the browser would play h.264 videos from youtube, but the spec page shows Flash support. On sites such as several running the review of this laptop, the imbedded youtube videos only offer the Flash (.flv). But going to youtube to see it there are two versions in h.264 as well.
(That's as seen by the DownloadHelper plugin in Firefox)
I can see using a small screen if one really wants a device this small, but I question cutting corners so far when it comes to RAM (only 128 MB), or not bothering to include a screen with touch support when the OS is made for it. It's really not Google's fault the UI seems so half-baked on this netbook. It's just plain silly to have an on-screen keyboard popping up when you can't use it. A well done interface could do quite a bit to make life with a small screen more tolerable. Given the spec page showing functionality that the demo didn't, maybe it'll be improved some before shipping. It's cute and apparently cheap, but I think using it would be torture.
I hope the 1.5 hours listed for the battery is the charging time, not the run time.
Not that spec sheets reveal much about joy of use, but specs are published here: