Didn't the XO project give us some indication on how difficult it is to create this type of thing?
And unless Arrington is ready commit to this project full-time, it is going nowhere fast. I suspect that he is using his clout to simply trying to get into the inbox of vendors.
Don't get me wrong, I'd love one.
I suspect Apple is working on something like this. We have the technology of Air and the technology of iPhone. Their love child could fill this gap.
I don't know going OS-less either. I think "Grandma" mode would be fine, otherwise, I'd rather have more control over the box.