Is Wal-Mart's $200 Linux-based PC "Unacceptably Low End"?

Wal-Mart unveiled its $200 Linux-based PC.

from the Wired blog:

"It has a 1.5 Ghz VIA C7 CPU embedded in a Mini-ITX motherboard, 512MB of RAM and an 80GB hard drive. Normally, this would simply mark it as unacceptably low-end for use with modern software."

I'm not so sure about "unacceptably low-end".  The specs on this PC are substantially better than my home machine.  I have a box at home that I primarily use for web surfing.  It was an old castaway Windows NT machine from an old job.  I run Ubuntu (with Gnome) on it, and it works like a charm.  It's a 933MHz P3 with a 256MB RAM and a dog slow hard drive.

So.. with superior specs, I think the Wal-Mart machine would be a great PC for basic home use.

.. though the "VIA C7" chip scares me a bit.  Any idea how it stacks up against a similar spec'ed Intel or AMD?