I can’t say I have a lot of experience with small laptops: mine is a 17-inch G4 Powerbook, but the idea of having a tiny computer seems to appeal to some people.
If you were looking for a small laptop, you’d have to start with the website dynamism.com – they’re the ones who get all the technology that doesn’t even make it into the USA. From memory, they even convert the Japanese editions of things across to English editions. The one I linked to back in 2002 was the Sony PCG-UI; there doesn’t seem to be a lot of new information on Google about anything smaller or better, but it’s hard to believe that there’s been no progress since then!
It depends on your definition of laptop, really. The oqo is very small, but you wouldn’t say that you could type with it.