Internet? No problem. Games? Heck yes! I have played the following with great results.
Need for speed underground 2
Live For Speed 2
Elder Scrolls 3
Need for speed Porsche Unleashed
Age of Empires 2
Those are extremely old games. All that means is that it can run games whose system requirements are about 1/8 to 1/4 of what's now considered mid-range among full-sized computers. Yeah, big deal, I could run Myst on this computer too. So what? That's not a surprise.
This computer is NOT powerful, as you claim. What it is is light, ultra-portable, long lasting on a single charge, and thus a perfect unobtrusive platform to carry with you anywhere for surfing the web or productivity.
And that's fine, since that is what a netbook is suppose to be.
At any rate, yes, this is a great deal. However, the one thing to note is that the wifi receiver is only g-generation, so it will not be able to take advantage of the new n-generation networks. No matter, however: n-generation networks will be backwards-compatible with g generation receivers. The only real problem is that you won't be able to take advantage of the greater bandwidth, but for me the current g-generation speeds are quite fast enough.
Also, as another poster mentioned above, you'll probably have to upgrade the battery from 3 cells to 6 cells in order to be able to use the netbook for a reasonably long time on a single charge. But also as he said, this is still a great deal.