I'm sure he meant a gigabyte of RAM. But if we push the java aside for the moment, I found in my experiment that MC aficionado's love Mod-packs, and in our family's case, they fight to get console control for generating new structures and spawning items (eg: weapons). Other thing that the die-hards like are texture packs, but these are client-side, so they only affect the local player.
Our config was: Win7, 2gigs, a quad-core Atom, very few services, and a gigabit NIC.
I just cant see it being anything but a failure at $99 (my son says maybe the $199 model has some merit, but the worlds can get big and with flash for storage, it would get slow too).