chef wrote:Would a laptop of same price, perform better than a net book?
Maaaaaybe? netbook OSes tend to be fairly streamlined, especially in the unix variety, improving performance. Your average cheap laptop comes with a great deal of cruft that will require cleaning before it runs well. Also, it depends on the specs of the laptop you can get for under 500 dollars. I like netbooks because they do as much light computing as an average user needs (plays videos, browses web, runs chat programs, etc) and are excedingly portable with very long battery life times.
It's really hard for me to give you a definitive answer above. It depends a lot on the specs of the laptop. The straightforward answer is, better hardware performs better than lesser hardware, but the user may never notice.
Most programs are written to run on considerably less power than is available in modern computers. Games, high end graphical processing, and high volume data processing being the exception. So, unless you plan to play videogames, run a rendering engine, or crunch the numbers from your latest LHC experiment.. You're likely fine with a netbook, may see minor increases in snappyness from a laptop, and can do all those things with my desktop, but not for 500 dollars.