Quite a few netbooks on the larger end of the scale can run games. I'm on an HP/Compaq Mini 311c, Atom 260, ION, and 3GB RAM (I upgraded it). I made a post on Reddit explaining what I did[1] - bear in mind this is definitely a compromise, while it boosted one person's framerate from 20 FPS to 60 it bears more than a passing resemblance to Minecraft and 1997. TF2 is on the absolute edge of what I can play on here, but many games run perfectly fine with very few issues. However it's taken me 5 minutes to post this reply because every 20 seconds, textarea inputs on Firefox freeze and ignore anything I type for 10 seconds. Odd!
Running a netbook is very much a reminder that CPU speed is not a linear scale.