As I said before, the bastardized Xandros  sucked. In fact, I managed to destroy it. So I decided to switch to another distro. Any distro.
Since I prefer KDE to XFCE, I started hacking at it, and produced, IMVHO, a much nicer thing.
As you can see, it takes slightly less space than eeeXubuntu's default, and a whooping 1GB less than the default distro.
How did I do it? First, by deciding what I wanted.
No OpenOffice. Koffice is enough to read docs, then there is Google docs, and I produce my texts using docutils
No printing. I have not used a printer in 5 years. What are the odds I will use one from the eee?
wicd for network configuration. It works for wireless/wired/encrypted and has no problem whatsoever reconnecting after suspend.
yakuake for terminal. It uses the least screen-space possible: none if you are not using it.
Firefox + Flash (I would use Konqueror, if flash9 had not broken it)
Kmail + Akregator for mail and RSS
It works great, boots in 35 seconds (and I have not tuned that, yet).
Maybe someone more enterprising will make a real distro out of it.