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> The $25 Model A has been reworked to include 256MB of RAM – double what we were originally planning to offer

So the extra $10 will only buy you an ethernet and spare USB port now; makes the $35 a harder sell (but not tonight, of course).

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I dont think so, if you need ethernet connection you need to buy an external lan/wifi card, spend at least a couple of bucks (3$ if you are lucky?)), lose one usb port (or use an usb hub), hope it will work in your OS, just to save some bucks (10-3 = 7$). For me, no way

However WLAN beats LAN, especially if I chose to build a small case and use this as a HTPC that I can use to watch.

Different people have different use cases. Apparently yours fits the Model B better.

is the wifi powerful enough for full HD streaming? I think the typical sub-10$ chinese WLAN card is just b/g

Eh, you seem to be able to get dirt-cheap USB b/g/n adapters too these days, though they're presumably 2.4 GHz only and who knows what the ARM Linux support is like for them.

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