I have a bluetooth mouse & keyboard and a 17" monitor that I hook up my netbook to in one of my offices as my primary computer. It's a great solution for me.
I have the HP Mininote 2133 (running a 1.6GHz Via processor, which isn't known for its greatness, with 2GB RAM) and I find it does all I need it to do--email, Internet, Word, Excel, and some specialized, but low-resource-using research applications.
It's my primary travel computer for shorter trips. For trips of one week or more, I do prefer to travel with my 14" laptop, although I have sometimes traveled with both.