Regarding why it might be the only hardware, I'm probably not as extreme on that front, but I think I can understand the motivation. With a choice between the slick user experience of a well-integrated touch device or the hacked together experience of roll-your-own Linux on roll-your-own hardware, I'm not sure how many kids would voluntarily choose the harder (but ultimately more rewarding) road. A certain amount of struggle and adversity seems to be important for making knowledge seem worthwhile and for pushing kids to explore. My own kids are most proud of themselves when they do something that's not easy for them, even though they usually complain the whole time they're doing it.
Having severely-limited hardware made me invest lots and lots of time into figuring out how it worked. I would like to pass that experience on to my kids, so they can be masters of their own technology world instead of passive consumers of other peoples'.
Did you screw up your machine? Do you know how to re-install the OS? Here's a printout of the page that tells you how. Have data you didn't back up? Well, here's a protip, you can mount the hard disk on another machine, maybe your sister will let you use hers.
My brother let me tinker with his C64 (when I was about 10 years old) and that started my career in programming.
This is huge. As a kid, this would motivate me to learn everything about X. Heck, for many values of X, I would find this motivating today!!
But how did he handle the knowledge gap, where he could help but you would benefit from working through it yourself?