I think the idea of a 'cheap' PC is way overblown. It might be cheap but it won't be worth using in the long run. What happens when the word processing mom decides she wants to play a FPS and kill some fuckers? She has to go and spend even more money to buy a real PC which should have been done in the first place.
As for hardware/software cost in a computer, it doesn't really matter if the software cost goes away. The hardware will be sold for the same price because people are already willing to pay that much for it. Much like how the Indian gas stations here sell gas for the same price as the non-Indian ones.
But how many people out there still don't own a computer because they can't afford one and don't want to 'waste' money on something pricier. All they care about is checking their email or viewing their account balance for their checking account, etc. Sure some of them may desire a better computer in the future and many of them will probably notice the sub-par performance but at least they can afford
something.
One of my grandparents is a perfect example of this. She has an old 233mhz compaq peice running windows 3.1. It gets used for reading email, printing the occaisonal flyer for church, and playing the occaisonal Mahjong game. She can certainly afford a brand new computer, but doesn't buy one simply because it does what she needs just fine. Since its so out of date, it also has the funny side affect of being
relativelysecure
Another example: I needed a drill when I moved into my new apartment and none of my friends with one were in town. I went to walmart and bought the cheapiest pos they had. I knew I would regret it at some point before I even bought it. The first time I used it I wished I had bought a more expensive, higher quality drill because I'm used to a better one. However, it got the job done and I was happy. Almost 6 months later I STILL have not replaced it with a better drill because damn't, its good enough!
/end rant, thats my two cents.
