I've been using the Fujitsu U810 which we recently reviewed here: http://www.mobiletechreview.com/notebooks/Fujitsu-U810.htm . It's much smaller than a notebook, a tad bigger than the OQO and sells for $999 or so. It comes with either Vista Home or Vista Business, but the Vista Business version includes a restore disk and license for WinXP Tablet Edition (it runs faster on XP).
If you're still willing to consider a Windows Mobile device, the HTC Advantage X7501 has a VGA display that's very easy on the eyes (even if you're in the reading glasses phase of life). And it's more powerful than the XV6700: http://www.mobiletechreview.com/HTC-Advantage.htm .