That is pretty good for the price, and it's the 'standard' netbook setup that has been sold over the last few months.
I wouldn't be surprised if we see that price for a number of netbooks with the same specs in November, but I don't think prices will really go that far below $199 for this model, even when new netbooks show up.
The performance isn't close to a CULV or anything ION based, but if you're just looking for a simple Internet browsing, word processing machine it isn't bad.