Microsoft?!? How so?
You can bet that this system was going to be offered with XP, but "something happened". The 4GB model is more than large enough to handle it. Even the 2GB would have room for XPe and some apps.
Now Intel, may or may not been involved in the design process... It doesn't have to be.
They pretty much do; The 701 is a sort of triumph of stuffing intel chips in small packages. You don't do a design that deviates so far from the reference design without some guidance. ASUS has been doing this stuff for a long time... with intel.
It hugely depends on the window manager.
I'm using Jolicloud which like UNR uses some daemon to strip the decorations off too-large windows. Lots of them still won't fit, of course.
Yes... but users won't let us... Believe me, I have gone into this battle many times and always lost.
I've got lots of apps that work fine at 640x480. This is great when video has failed and you're trapped in VGA mode. Tabbed dialogs have really made this EASIER than it used to be in the past.