"Although the Classmate costs $285, it includes a branded Intel chip and Microsoft software, both of which the XO lacks."
ish.
Amateurish article by someone with scant grasp of technology
On the other hand, the conclusion that things will probably work out better if the XO leads a pack of for-profit companies into the space is pretty sensible. Imagine Dell, Intel, Asus and others slugging it out to get cheap laptops into the developing world.