By my recollection, $299 is what newegg sold the Eee PC 2G for at release date - so this isn't the first cheap latop at $300. Of course, that only had a 2GB SSD (hence 2G) inside - but all the other stats sound about the same.
However, it is $100 cheaper than the 4G model but then you have the difference in processors.
@Pei-chen
Depends on what you are going to use it for. For many people, $600 is out of their range and they only want internet and email in a small, compact subnotebook.
Personally, I bought and Eee PC 4G. I tote it around (its a little big bigger than a paperback book, but not by much) and use OpenOffice to track expences, log on with mobile broadband to check email, and do a little text editing. Another $200-$300 would do nothing to increase my usability, and thus would have been the same as throwing the money in the trash!