Yes it does have a processor - not much of one, you won't be creating any graphical masterpieces on this machine nor will you be scoring orchestras mixed with dub step.
This device is a convenient on-line device that is hooked into the Google network. Your main GUI (graphical user interface) is Chrome browser. You can download Apps from the Chrome Store as well as add more functionality with extensions.
What about the drive space ? well think of it now as a tablet. Drop box, Goggle Drive are available to you for drive space, there are two USB ports for use 2.0 and 3.0 , as well as HDMI and SD ports. You can use a thumb drive or external USB HDD or SD for expanded storage.
There is a port for headphone/mic and power plug, as well there is a pretty decent webcam with mic in the expected position on the screen forehead.
There is a bluetooth too.
Battery life is 6 hours. The trackpad is sensitive and works well, and the chiclet keyboard is reminiscent of well you know who ;).
You can not compare it to a notebook of any kind. I have seen people comparing it to the Apple Airbook, silly rabbits !
The Airbook is @ the 1000 $ price point, the Samsung is @ the 250 $ price point . HELLO!
As with most things in life and especially with electronics YOU GET WHAT YOU PAY FOR.
I am writing this blog using it, and with ease I will add.
So to sum up my thoughts, don't compare it to a laptop 'cause its not one. If you are using Google you will love this light airy device for productivity using Google. Don't think its extremely limiting cause there is no skype ' cause guess what .... you can dial for FREE to a landline using Google+ Hangout ... Yup FREE.
Oh I forgot to mention, youtube Yup, netflix Yup, audio via Google play and more may be released in the future but its really not a multimedia device.
There is remote desktop ability, ssh, VPN and some other admin stuff this further extends its usability.
I think there is a pretty good bang for your buck here, if you have a couple a hundred bucks you want to blow on an interesting and different gadget consider this one.
Score A for Goggleability
Score B for price point
Score B for build
Score B for expandability
over all I give it a B.
Here are some other reviews that may interest you:
http://liliputing.com/2012/11/samsung-chromebook-review-249-arm-based-model.html
http://www.techradar.com/news/mobile-computing/laptops/10-things-google-should-fix-on-the-chromebook-1165837
Its sunny today and fall is definitely on it way.