I think intel atom is a specific generation of CPU designed for a specific goal, they have used in the netbooks because they were thinking of making a small laptop but making a small laptop means it will have a small battery too, so if you can even use a notebook CPU for it (and you do not think about heat dissipation or the space you have or more important the design of motherboard for higher frequencies) you will face a real power consumption problem, so the main idea was building a cpu with power of pentium 4 cpus in the year of quad core ones for just obtaining a real low power consumption and they just did it well, for comparing them i will give you an example : the most used atom for netbooks was n270 and n280 and now n450 , now an intel 2.8GHz P4 uses about 84Watts TDP and a comparable atom which can be N450 uses 4.5Watts TDP , so they have done it astonishing. the performance is enough for a user which uses PC for multimedia (not HD), web surfing and other daily things, but when it comes to engineering i have a N210 samsung netbook with N450 cpu and it really can not open matlab software, so no usage for professioanl users.
We have a cpu here which is extremely low on power consumption, a normal core2dou for notebooks will use around 35Watts TDP so if they provide an atom which uses 35watts then it should be comparable to T9600 with 35watt TDP usage, so this is why they do not even try to produce intel atoms with much higher frequencies and caches. the boards that come with nvidia ion are capable of playing HD movies and even playing games in low resolutions, but i think we should not ruin their power usage by increasing their performance because they have been made to be used in portable things with little batteries, if you want a powerful netbook then get a notebook

. recently i can see many peoples buying motherboards based on intel atom processors which costs them little and will give them enough power for daily usage, the intel atom comes with these mother boards is D510 which uses 13 watts TDP which is not very little any more but it is very less than a desktop core2dou, so most of the times you get a whole case with TDP usage of around 25 watts, so you will spend less on your case and you will save money for monthly electrical power fee, D510 based motherboards are even capable of playing full HD movies because of their 400MHZ gpu frequency (this is 200 in N450).
Why should someone buy an intel atom ? i have bought two intel atom based desktop PC, one for using as a Media Center for playing movies on our TV and another one a desktop PC. i bought the first and i have said why in the topic i created in hardware section, i bought the second one because i want to use my PC as a server for counter strike game, so i have reached this goal and D510 is surprisingly good for a 32 player counter strike game, and i do my daily works (an example is this post

) with it too while it is functioning as a server 24 hour a day. so i want to say some people buy it and some don't, you should think about it to see if it will do your work or no.