Well, I wonder if it would be suitable as some kind of low-power all-in-one home server (file sharing, irc in screen, not much more), network router and jukebox and movie player. In theory, specs are ok for that purpose, but from the remark "if you need more than 1GB, you're probably doing it wrong", it seems that, hm, I'd be doing it wrong, because 1GB isn't exactly a lot of memory and it'd be wise to put there more.
(And of course, USB might not be the ideal bus to connect a lot of disk space.)