This project funds itself by selling the hardware. Releasing the software as a free app would kill their revenue stream, and hence take away the project's air supply. Releasing it as a paid app would present all sorts of logistical problems regarding distribution and payment collection given the intended user base in the third world.
It's important that they have a lean development process, but it's equally important that they have a lean and robust revenue and deployment model.
Ancient history.
If they're still nice to use 2-4 years after purchase, there will be second will be a lot of android tablets looking for a second life in a few years. iPads are already piling up
It seems like olpc is constantly being outrun by devices.