IMOVIO has launched a smaller alternative to a subnotebook.

The new iKIT is about the size of a PDA, but has a QWERTY keyboard and connects to the Internet at 3G speeds. It only costs $175 and is based around Linux.  It even comes with a Webcam built in, as well as a range of applications, including Web browsing, e-mail and IM.

It connects to the Web using a standard Wi-Fi connection or Bluetooth. It was formally released in the U.K. a few days ago, but now appears to have been launched in the U.S. and Europe.

More here.