According to author's post in the Reddit thread, it has a 400MHz arm9 with 30MB of RAM.
That's actually pretty decent considering what it is.
Do you think you could run owncloud or something similar to use it as a sort of wireless flash drive?
or maybe it could be used as a ultra low energy bittorrent client: the cpu should be fair enough (many router/nas use 800mhz-1ghz ARM cpu and they offer bittorrent and other clients) and even though this device is low on memory (32MB RAM) it looks like transmission client can use only 10MB or RAM: http://pastehtml.com/view/5tx16jw.html so MAYBE it could work.