I would second Duane's suggestion to look go with a red-tag sale ibook. Although you will be able to run everything you want on a color ibook, it is going to be very sluggish. It's a 5 yo machine afterall.
I have the fastest color ibook, a 466mhz graphite, and although it works in a pinch, and looks awfully fine, it really isn't up to par with a 1.2ghz G4 ibook. The delay between clicking something and then the action actually happening can get confusing. For example, click on the wireless icon on the title bar -- nothing happens -- click again just as it is opening from the last click thus causing it to close. It can get rather frustrating to do any real work on it.
Right now, I have it set up as a "coffee table magazine" -- i.e., it's there for guests who want to do light browsing. If I had to work on that computer -- I'd go nuts.
Also consider that even if you get a good deal on ebay, let's say $350, chances are it will have inadequate memory. You will have to pay $100 for the memory module. Secondly, the HD will likely be 6 or 10 gbs -- that just isn't sufficient. The OS is going to take up 3-4, and your applications a bit more. Secondly, you mention you want to some HTML editing. Some of the sweetest development software exists on the Unix side of OS X. You are going to need ample disc space to be able to use that stuff. Last, you won't have room for lots of pictures or music or any of the extras that make a computer fun. Add $80 for a HD upgrade (you do the labor). You're up $530 for antiquated hardware. Want more than 45 minutes of battery life (the battery you get is going to be worn out) -- add another $130 for a new battery (don't buy a "new" but old battery off ebay -- li ion batterys have a shelf life even if unused). When you are taking notes in class, you want to make it through the whole class I presume.
Also note that although iPhoto is going to run, it is designed for a higher resolution machine than the 800x600 color ibook (it wants 1024x768 -- i.e., a white G4 ibook), so it won't run optimally. Add to that the fact that simple things like resizing an image view take a long time to happen on the old color ibook and iPhoto, although it will run, won't run well on the old machine.
I know this is getting long, but here's my take on things. An iBooks is a great and cool machine -- as long as it isn't your primary computer. For that matter, my early 80s TRS-80 color computer is a great machine and it can do all kinds of amazing stuff -- there's even a guy out there who uses one to serve web pages. But it's a curiosity now and should never be considered as a primary computer. You would be much better off to buy something about 1-2 years behind the current "best" -- that way the machine will still be able to power modern applications, but you won't pay the "latest and greatest" premium prices. Honestly, the color ibooks are at the end of their useful life.
Please note I'm not flaming -- these are cool old computers without a doubt, I've already invested 700ish bucks in mine just because I like them, but I already have a speedy desktop and a speedy laptop. The ibook is for my collection, not for real work. And although I know many people do have them for their primary machine -- I guess I just can't fathom that. You buy a computer -- you want to work it, make it serve you, and a machine this old just isn't up to the task. By analogy, you could probably run a restaraunt off a coleman camp stove -- but you couldn't run it efficiently. You'd need a nice 6 burner job to get everything done in a timely fashion.