Recently Acer announced that they will be shipping their netbooks with Android - google's linux operating system.
Fedora 11 is out: http://www.eweek.com/c/a/Linux-and-Open-Source/Fedora-11-Delivers-Big-Feature-Boost-to-Latest-Linux-Distribution-748274/
Intel Classmate PCs will ship with Ubuntu: http://www.ubuntu.com/news/intel-classmate-unr-netbook-remix
Canonical announced planned support for Moblin: http://www.ubuntu.com/news/canoical-commits-ubuntu-moblin
Belgian Ministry of Justice saved 50% on software license costs by moving 10,000 users to SuSe Linux Enterprise Desktop: http://www.novell.com/success/belgian_ministry.html
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Interesting article on Intel investing big time on Linux with Moblin: http://www.nytimes.com/2009/05/25/technology/business-computing/25soft.html?_r=1
"Moblin fires up and reaches the Internet in about seven seconds, then displays a novel type of start-up screen. People will find their appointments listed on one side of the screen, along with their favorite programs. But the bulk of the screen is taken up by cartoonish icons that show things like social networking updates from friends, photos and recently used documents."
the path is from netbooks and atom to smartphones...