Google's answer to MicroHoo

From a comment on New York Times BITS:

If i were google, i’d prepare to spend 44 billion on a counter-attack, not to buy yahoo, but to develop a wifi-enabled mini-laptop running an open-source OS (like the asus eee) and giving it out free of charge to every man woman and child in the USA. With one bold move google could break microsoft’s back overnight.

— Posted by stephan baishanski

Hell, why doesn't Google just buy Asus and give away 250 million eeePCs? (Okay, so 250 million times $300 (retail 2GB model at Amazon.com) is $75 billion, not $44 billion, but surely that's pocket-change to Google, and the cost wouldn't be the retail price anyway.

My only question is, so what about the rest of America, Europe, Africa, and Australasia?