I totes would love to have one of these. I have my desktop for heavier gameplay, this would be fun for a few games on the go.
I don't think there'd be that much of an issue with the screen, unless you have p bad vision problems. As it is now I have an 11.1" netbook by MSI, and the screen size is very managable on that.
Realistically I'd go with at least the core i5 system over the C2D, the i7 would be ideal I would think, (larger cache, faster turbo speeds), but at least the i5.
My suggestions would be:
* avoid skimping on cpu power
* base is 4GB of ram, which should do you fine. If you want more, and you know how to install it, for the love of all that is holy don't upgrade through dell / alienware. Going from 4 to 8 gigs is a $350 upgrade? You can get an 8 gig pack from newegg for ~$85.
*same with hdd. 320 gb base is p good, if you need more look into an external drive.
upping to a core i7 brings to the total to $1114, which is in the territory of some of the more beefier full sized gaming laptops, but you are also gaining a bit more in portability with it.
The ASUS G73 (core i7, gtx 460m, 17.3") is ~1500, and while it'll outperform the m11x, it's not as portable, as it's really a DTR, not a laptop.
Really, I think if you are going to look at a gaming-centric laptop, anymore the m11x is basically the only reason to look at alienware, otherwise ASUS and other companies have been putting out 15-17" laptops that can compete with alienware, and beat them on price. The best thing about alienware is the vanilla install; no bloatware at all.