Illum_the_nation: the basic idea is that we can't fix the food distribution, can't fix the medical care, and can't institute schools worth a damn. We can't get it done for 100% of us here in the "first world".
But, children are going to be no different. They are going to be open-minded, they are going to be curious, they are going to be capable of learning new things that their parents can't grasp. There are already educational materials for these laptops in the works, but even without that, think of a several-mile radius with one internet connection, but 50 of these computers. They all now have a one slow working connection. Kill that, and they still have the ability to communicate to each other, over distances that could take days to walk (each XO is a fancy wifi repeater, and should handle any other one within a couple hundred feet).
You can't give them books: any two text books will be heavier, larger, more expensive, and less durable than the XO, and require more adults to make use of it.
Maybe it won't be good. After all, it's a modern Pandora's box--and remember, it was hope that she couldn't get back in, and hope that was the eternal suffering of mankind just because she was a little reckless. I think it's a worthy experiment, though, because where they are to be used, what we consider normal just won't work. On top of that, there have been no true innovations in notebook PCs for years (not using 150-300w+ CPUs*, and have a fryer plug are nothing compared to the mesh networking, BW+color display, nor kid-resistant physical design of the XO).
If my financial situation were a bit better, I'd go for one (or if they offer it later, or offer one less tweaked for their target audiences). The EEE is kind of neat, too, but the decent display, battery life, and ruggedness of the XO is unlike any other computer you can buy as a consumer. AFAIAC, there's not a notebook readily available on the US market worth buying. Why do I need a Celeron-M, 4+ GB flash (hello, USB ports!), and so-so battery life to check mail, edit text documents, and write some code? It's going to cost $400+, be too bulky, and something will break in a year or two. I want a PC built like my NDSL.
* google "Intel Tejas"