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I've used one a couple of times and I found it a bit fiddly with my fat hands - I'd rather stump up the extra and get an acer aspire one, but I suppose it's down to preference!
Seen them a few times on Ideal World while channel hoping (honest) and they use GSM single like mobile phones and you get 20 hours of usage free for the first year then pay so much there after.
I have never used one, but I presume that you can only use the basic internet?. I think flash sites will work i.e. youtube?, but thats about it. So no movie sites etc...