I think it's a great deal. It's $240 off the price of the model that was the MacBook available, new, literally just one month ago (the MacBook was just updated on May 18).
So, yeah. And bear in mind that even though it's not sporting the same GeForce 320 graphics as the current MacBooks, I still consider it part of that same generation...it's the same redesigned, rounded Unibody style MacBook with the built-in battery, glass Multi-Touch trackpad, LED backlit display, etc. that came to the line in October 2009. It's not the one from the first-half of 2009 (and earlier), like my Mom has (with the more squared-off body, the X3100 graphics, 160GB hard drive, etc.).
So it's not really that far behind the curve. The graphics card, and a slightly longer battery life (10 vs. 7) are the two things I see that are really different/improved between the current one and the $759 refurb that was updated on May 18). And since you're just needing this for e-mailing, browsing, etc., those are probably things (the graphics, anyway) you'd never notice anyway.
Honestly, if I had to get an Apple notebook tomorrow - new or refurb - this is the model I'd get, hands down. It's a good price for a great machine!