2. I'd swap to an SSD later.

My wife has some Asus X200CA-HCL1205O Laptop, 11.6" HD LED Touchscreen, Intel Celeron 1007U, 4GB DDR3, 500GB HDD, 802.11n, Bluetooth 4.0, Win 8 that I swapped in a 99USD 240GB Crucial M500 SSD and it's very nice for travel and more. Videos play fine.

But we also have some Asus X202E VivoBook, 11.6" Capacitive Multi-Touch LED, Intel Core i3-2365 Dual-Core 1.4GHz, 4GB DDR3, 500GB SATA, HDMI, USB 3.0, 802.11n, Win 8 and it's performance is more than a notch up. It would be interesting to flip in some SSD to that.
Bob