Look at the consumers. Most can't use linux. Many can't set up the wifi, email and such in Linux so back to Windows.
Why did Asus stop selling Linux netbooks? I recently picked up an Asus 1005HAB at Best Buy for $299. It came with Windows 7 Starter edition. They were sold out of the XP model for $279. Too bad. It runs really slow. I tried upgrading the RAM with a Crucial brand 2gb SODIMM to speed it up. It was a piece of cake to install. It helped the speed a little, but not much.
What really helped the speed was installing Linux. I tried several versions of Linux, but had problems with the Atheros Wireless adapter. When I booted from the new Ubuntu 10.04 desktop edition live CD, it saw my network adapter and wireless network right away. This was the ONLY version of Linux that recoginzed it.
Here is what I did to install a dual boot with Windows 7 Starter and Ubuntu 10.04 Linux:
I used the Windows 7 Disc Manager 'Shrink Partition' feature to reduce the size of the Windows 7 partition from 160gb to 120gb.
I downloaded the free Ubuntu 10.04 release candidate ISO file and burned it to a Live CD. Then I booted from the CD.
I ran the Install program from the CD
During the install, I took the 'custom partition' option and created a new EXT4 partition using the free space.
Then I installed Ubuntu 10.04 Linux in the free space.
When I rebooted, both Ubuntu and Windows 7 showed up in the Grub boot menu.
I tested it and both Windows 7 and Ubuntu booted just fine from the boot menu. Then I did several boot speed tests, timing from the Grub menu to the login screen. Here are the results:
Windows 7 Starter - 42 seconds
Ubuntu 10.04 Linux - 13 seconds
My test results show that Ubuntu 10.04 Linux boots 3 times faster than Windows 7 Starter on EXACTLY the same hardware.
I also tried Ubuntu 10.04 Netbook Remix and had the same results. I never did like the Netbook Remix versions of Linux though. I'm sticking with the Desktop version of Ubuntu 10.04. The final release of Ubuntu 10.04 LTS will be released this week. Check it out.