The 12 inch notebook market is a tough one. People who are after these notebooks want to be mobile and they want to get as the most out of their battery with reasonable performance. The only thing that is missing is at least some sort of graphics core that would enable you to play some games.
Intel's 965 integrated graphics are simply not good enough for most of the games and the users who travel a lot would really love to be able to play a match of two in the mean time.
MSI is aware that there is a need to get some kind of graphics in these notebooks, but the people responsible for the design want to put a graphics core with Turbo cash support.
While we would rather like to see at least Geforce Mobile 8600GT or Mobility Radeon HD 2600 graphics in 12 inch notebooks, it is highly unlikely that this will happen any time soon. This time frame includes 2008 and MSI might have a turbo cash powered 12 inch notebook for the next year.