Taking on the Eee, perhaps. But as has been said on this site before: you can't take on the Air with a lower-end product. Considering how part of the Air's smoothness involves the perfect hardware-software integration, you could even say that it's near-impossible to "take it on" with a Windows computer. It won't be nearly as smooth.
I really think that this "mid-size" mobile platform (Dell places these between the iPhone and the XPS-M laptops), needs a capable tablet computer.
Something real sleek and thin -- picture the iPhone but blown up to 8-9" would be excellent for the "30 minute web experience" as Dell calls it in their slides.
