This is just as true in the developed world as well. I always cringe at laptop placement programs (or even worse, iPad placement programs) in k-12 schools. They always turn out to be a waste of money with nothing to show. The most needy students don't even have internet access at home anyway.

Great comment. I don't think anyone ever thought the XO itself would be a panacea for any problem. It was meant to act as a starting point to help bridge the digital divide and act as a gateway to content and educational material (and maybe eventually other services). In fact one of the first projects that OLPC was working on for the XOs was a huge built in library.

The project was never about the laptop as a panacea, which is why the project wasn't limited to the hardware, but has always been about educational content, instructional methods, and support infrastructure, as well.