The XO-1 project is something I've been very excitedly talking about for five years, with responses from "wouldn't that be nice" to rolled eyes. The "One Laptop Per Child" nonprofit org (extremely cool-looking website) was created by MIT faculty to provide schools in developing countries with cheap, rugged, full-feature computers. There are very few moving parts, and they use free, open source software, starting with a Linux operating system.
The cost is actually $176, but will drop disproportionately to production (the price will also obey Moore's Law). Ten years ago I bought me a very loud, very heavy 2-gigabyte hard drive for $250. Today, a 2G memory stick that you can lose in your pocket costs 20 bucks.
Here's a picture of kids in Thailand using the XO-1 to take web shots of what looks like animal poop on a leaf. Proof positive that it's contributing to the lives of children, I tell you what.