Windows XP is fine with me and works great on the hardware I mentioned. If I ever go *nix way on them then it will be Debian or OpenBSD.
Firefox and Tor Browser work good on Windows XP with 512 RAM. Biggest issue is Flash in Youtube and webpages. And I always run with AdBlock Edge add-on.
The concern is longevity and portability of the notebook. If somebody here want to swap my HP Pavilion dv8000 (AMD Turion-64 2.0GHz, 1GB RAM, Radeon Xpress graphics chip, dual hard drives 100GB each) for Panasonic CF-29 in working condition I will do it.
Okay, but you know that XP is not supported anymore, right? Could make you vulnerable to a lot of cyber-attacks, which wouldn't be good if you're entering passwords and running bitcoin clients and stuff.
Lubuntu is Debian based btw.
It does not matter at all. It is marketing trick to force people buy both new OS (Windows 8.1 which have poor sales for obvious reasons) and new hardware capable running the "supported" OS. It is called planned obsolescence.
For me it is irrelevant that I don't receive some patch for unused component or some other thing. Critical patches will be released for WinXP just as there were patches for critical vulnerabilities for Windows 2000 after it's support ended. And 99,8% of people get their computer pwned by their own actions (grab your dick and double click downloaded picture.jpg.exe) rather than by exploiting 0-day in Windows.
I probably will go with the dv8000. When in rest I will watch nationalistic and patriotic video clips with my comrades on it's 17,3 inch widescreen. And educate them about nature of russian imperialism and how to better fight against it by aiming properly.