“An engineer explained to us that hundreds of ear impressions were gathered in the name of research, and while each one obviously boasted its own unique shape and size, one single characteristic remained uniform across the board: the entrance into the ear canal is not a perfect circle, it's an oval.”
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I do remember it being cancelled or at least not reannounced when recent word about the 7" coming to market. Way after the trade shows though.
Here is a wiki page discussing the "rumor" of it being cancelled http://wiki.eeeuser.com/eee_pc_1001
And a forum topic translating a chinese website (lol!) http://forum.eeeuser.com/viewtopic.php?id=125