An internet capable printer is a great idea, as is the "whitelist" idea to keep grandma and grandpa from printing out fifty pages on how how young coeds are waiting for them. Like the grandfather in this article stated, it's like the US Postal Service, only more timely.
My one idea for "version 2" is for some sort of scanner, perhaps with OCR, for replies. Though at some point you begin to wonder if grandma should just buy a Dell or if the world we be better if we all had fax machines.
On the fax machine note, why not just buy a fax machine instead? You can buy them for a little as $30, and there exist services to connect fax and e-mail, probably for less than Presto's $100 fee. And the grandparents can write back. Granted, it's less elegant, but there you go.
John, you might want to look into a service called Celery. Just search google for "mycelery". They let you turn a fax machine into an email device that can send and receive email. Their service looks to be for seniors so it might be a good alternative.
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