"Windows 7 Starter Edition is expected to cost netbook vendors $50. That's not much, but it's a good deal more than the $15, and less, it currently costs them to put Windows XP Home on their machines. Adding insult to injury, Microsoft has decided that Starter Edition can only go on a netbooks with a 10.2-in. Or smaller screen , with no more than 1GB of RAM, a hard disk drive of no more than 250GB or a solid-state drive no bigger than 64GB, and a single-core processor no faster than 2 GHz.
"In short, if a netbook manufacturer wants to produce a high-end netbook, Microsoft is forcing them to use Windows 7 Home Premium."