Hey!  New to the mailing list, but figured I would submit another data
point for your consideration.

I've been switching back and forth between Ubuntu 10.04 and Archlinux
on a Dell Mini for the past year, with one of the early Atoms and 1GB
of RAM.  This thing has soldiered on like a champ, and really haven't
noticed any slowdown running the full GNOME environment.  In fact, I
briefly played with the Netbook Remix and it felt a lot less
responsive than vanilla Desktop.

That said, I'm currently running Arch with Awesome WM, and it's zippy
and light and I love it.
--
Sean
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