Here is a great video explaining the reality of the one-laptop-per-child project and the final version of the product. One Laptop Per Child | New York Times Video - good job David.
What I find most intriguing is that there is such a strong emphasis on programming tools and languages built-in. With Python, Logo, and Squeak standard, many of these kids will teach themselves a lot of important programming skills. Takes me back to my days with an Apple II... the posture was not "how can this machine entertain me" it was "what can I make this machine do?" Add to that the collaborative nature of the platform (which the Apple II never had) and development can be greatly accelerated.