Previous failure was predictable
The earlier javastation concept was fatally flawed for one simple reason; compatibility. Businesses use computers to perform processes, and those processes typically involve Word and Excel documents. The Java thin client just couldn't handle that. So businesses didn't want.
Now today we have netbooks... and what's happening? Linux is being dropped and replaced with Windows XP. Why? Compatibility! Home users rarely can afford a real machine and a network-access machine; they're buying netbooks as cheap laptops so they can edit their Word and Excel documents on the move!
Sure, there are some people for whom the original netbook concept fits nicely (me!) but we're in the minority.
So why does Larry think his new javabook will succeed now? OK, OpenOffice and Google Docs are now around, but they're still not the same as having a Windows machine in your bag.
So even without trying, Microsoft will kill off this new idea. Blame Microsoft. As always.