On some level the Neo is just a new chapter in the story of the original iBook. The difference between 1999 and now is the much stronger Apple brand, so people on the fence were quite ready to throw down with a $600 Mac.
Apple was on the ropes in 1999!
Classic MacOS never had an entirely reliable network stack for browsing the web but hey, they had a GUI running in 128k of RAM in 1984. Not to say that macs didn't have their charms during the .com bubble but it wasn't until Mac OS X came out in 2001 that a mac was a purchase that made sense.
True, but it's effectively a 'new' market segment when it was introduced and thus demand was less predictable.