My two kids and I both have Averatec 3270s, which have been working
fine. I'm the only one to have had any hardware problems (LCD
invertor failed), and replacing it was easy. My wife has one of the
bigger Averatecs, and has also been happy with it.

This is about as small as I'd recommend -- I had a Sony Vaio 505 for
several years, and the 90% size keys drove me nuts...