Earlier quoted context omitted.
No, it's doable - BUT not the way they're marketing it. As a pure gadget and not a PC, it's very possible. Take out the touch screen, add a keyboard, use ARM instead of x86, and you're all set. I blogged about it in detail here: http://neosmart.net/blog/2008/what-the-techcrunch-tablet-sho...
A keyboard for this kind of device would be stupid. If that's what you're after, just get an Eee. And browsing the web without a touchscreen or some kind of pointing device would be a horrible experience. They've got the concept nailed for the most part...now the challenging is building it for that price.
And why would you need a touchscreen to browse the web? The only things you would do on a website are enter the address, scroll, type into forms, and click a link. A touchscreen only addresses the very last of these, while a keyboard deals with all of them. A button on the side of the screen - or a vertical touchpad even - would easily solve the button problem.