Google's CEO has hinted that there will be Android-powered netbooks backed by Google (subsidized) or its partners. And this will probably happen sooner then you think...
Google CEO Eric Schmidt said in an interview with Computerworld Blog: "What's particularly interesting about netbooks is the price point. Eventually, it will make sense for operators and so forth to subsidize the use of netbooks so they can make services revenue and advertising revenue on the consumption. That's another new model that's coming."
The idea of selling netbooks cheaply with a service contract is already being tried. Mobile operators like Tele2, or T-Mobile already offered netbooks with 3G contracts.
The last 2 years Linux already became very popular, because of the boosting netbook sales & if one company can fight the Microsoft domination Google will probably be the only one.