After looking at this laptop I can definitely say that even a cheap one like this can certainly replace desktops for people like me. The performance did not disappoint me. I noticed no significant difference with typical office apps or on the Internet. In terms of games you will be able to play some older ones at low level details, but there isn't any room to grow.
I am not disappointed with the layout. The modem jack and USB port could be in a place that is slightly easier to access but these are not major issues. It is a tad heavy; 7.09-7.85lbs according to Dell and may be an issue for some but not me.
The software bundle was decent, but there is definitely room for improvement. Windows XP Pro should be in ALL laptops not just business laptops. Office XP is excellent and I will add that the WordPerfect Pack will satisfy many as well.
Overall, this laptop is a possible desktop replacement notebook for people who do not game. Gamers might consider the slightly more expensive Inspiron 2650 (GF2 Go Video and P4-M CPU). I won't comment any further on that model because I do not have it on hand.