Netbooks absolutely were overhyped, and the market for them died really quickly. They were barely usable, and by 2010 when tablets really started hitting the market, there wasn’t a space for them anymore.
I think the Netbook concept lives on in Chromebooks: Cheap, low power laptops that make sense in scenarios where higher cost laptops don't fit. Schools, kids, etc.
Some fraction of it was probably eaten by Raspberry Pi's as well. A 12V barrel plug was like the USB-C of 2008. For pennies, you got a intergrate anywhere Linux machine that could augment a lot of hackery.