I really do enjoy the netbook version of Ubuntu. Simple, easy, quick, basic, streamlined. You could go on and on. If you have not given it a try, go into the Ubuntu Software Center and do a search on "ubuntu-netbook" and it should be the first option. Install it, and then log out and log back in making sure to select the Ubuntu Netbook version (at the bottom of the login screen) instead of GNOME.
The screenshot above is illusive. I'm trying this out on a 1440x900 widescreen monitor and it shows 6 apps across in each row. If this was a small netbook, you might have 3 or 4 icons across, making those icons much easier to see on a small screen.