It seems that the hardware specification for the laptop has been quietly expanded. The specs page now lists the processor as the Geode LX, which includes a floating point processor and both L1 and L2 cache. The memory also specs as 256MB (up from 128) and the storage as a 1GB flash drive (up from 512). Neat. That brings the laptop within spitting distance of my sister's current desktop machine (which is admittedly a bit out of date, but is a perfectly "normal" and "functional" desktop machine).
Which reminds me, we don't seem to have a spreadsheet planned for the laptop? Seems like something lots of children would like to have.
Oh, had an interesting idea for first-world distribution; for some huge company (or group of companies) that needs enormous amounts of "geek" work done: purchase 1 million laptops, then offer the laptops at 1 laptop per 80 hours of given work (or something like it). The value (and coolness) of the laptop is so far beyond the price at full volume that you could likely get programmers and sysadmins to go for the deal and get thousands of dollars worth of services per $140 investment. Sure, there'd be a risk, but it'd be interesting as an experiment.