Agreed, I scoured the earth (seemingly - the net anyway) looking for good gpu's and threw brand-name and size out the window. What I found was pretty disappointing. For years it seemed you were lucky to find a machine that would do more than allow you to surf/type/mouse. They soon improved that but the features were not much better. You now had a DVD player/CD burner and that brought video to the table. But still, the vast majority of people using laptops at this time were business people. For these reasons, machines like the Thinkpad (IBM/Lenovo) earned their place in the market. The likes of Sony, Toshiba, Dell, etc. got behind this push because the lion's share of users were businesss people/students. There are always exceptions, however. Companies have been making 'entertainment' versions of their business laptops but they have historically been very expensive because the market was not developed for such production.
Things are different now. There are places for people to take their laptops besides a business meeting. It has now become 'cool' to compute away from home. They make them with the purpose of being seen. It seems to me this is a growing thing. Where machines used to be mostly black with a 'nothing to see here' exterior, they are now different colors with accessories that light up and blink. This is not a NEW thing, this is just the end result of the evolution we've been witnessing. As such, there is this whole new group of 'power' users who are looking to take their more powerful desktop computer with them. People like this are marveled by a machine like the m1210 or the Sony that you found. It will play/burn dvd's, type/surf/mouse, connect to several USB devices (some of which light up and blink as well), accept digital memory from a camera/mp3 player, dock w/ a bluetooth cellphone/headset, AND play video-games made up to 2006 at acceptable fps. All at 12". So what if it weighs a pound-and-a-half more than the very-well-built Lenovo. The lenovo at 12" requires an external drive to play dvd's and I do not believe it has a discreet card. So for these folks (and there are now many many of them like the OP), a T60 is a beautiful machine that does not say enough about them. The m1210 (or something like it, regardless of the Manufacturer) does the trick. It's smaller than the T60, it's cheaper than the T60, and it performs similarly. As a matter of fact, you are paying 30% more for the Lenovo with the superior GPU. I would assume 15-20% more for the same GPU and guts, but I could certainly be wrong.
I am not saying one is better than the other in any way. I understand how reknown the T60 is and how much their owners love them. No arguement here, whatsoever. But there is this whole group of users who are not as pragmatic as T60 users and they want flash. And if they can get flash at 30% less and choose almost every part that goes in it, it makes alot of senes. They don't care that the size/weight ratio is out of whack. They don't care their laptop, closed, is taller than most in it's class.
Anyway, it seems easy to understand but some seem to struggle with any opinion besides their own.