Trying to keep netbook makers in check was probably unrealistic, said Solis. PC makers have long been conditioned to compete by continually adding new features whenever they are available.
Intel is also giving the market mixed messages.
For instance, the Asus 1004DN is only able to support HD video because of its powerful on-board graphics chipset, the GN40, which is made by Intel.
Also, while Intel sought to tamp down the specs of netbooks using its N-series of Atom CPUs, Intel unabashedly targeted its nearly-identical Z-series of Atom processors at laptops with larger screens and more RAM.
Intel is still trying to prevent PC makers from using its even more powerful N330 Atom CPU in netbooks. The dual-core chip is ostensibly available only for miniature desktop PCs called "net-tops."
Intel's efforts may be futile. Companies such as Taiwan's ASRock, a subsidiary of Asustek, showed off its N330-based netbook at the CeBIT show earlier this month.
New market, no worries
Microsoft, meanwhile, loosened its restrictions on netbooks last July to allow screen sizes up to 14 inches and touch-screen capabilities. It also doubled the maximum storage to 160GB.
A Microsoft representative declined to disclose the current full guidelines for licensing XP Home, but said that "Microsoft software does support optical drives on netbooks, including Windows XP Home."
Solis says that Microsoft is "smart" in being flexible.
"In the end, they are going to want that business," Solis said. "Netbooks are a growth market in a struggling economy. And it'd be much worse if the netbook makers went to Linux, instead."
