How do standard desktop applications fare on the Netbook? Some just don't fit, but there are several which just work and allow to have a small workspace available.
The first screenshot shows that albeit crammed, the Workspace is fine. The panel with the folders could be closed to gain even more space. Behind you can see the Terminal application. Sure, only one can be seen at a time, but it is enough to work.
Note: Screenshots are from applications actually running on the Letux 400, not mock-ups.