is not a bad idea for teaching programming. But they should have built in a few displays/LEDs etc . and bundled few daughter boards/sample projects which could do cool things to get attention of the kids; without which there is no much point in using this vs an emulator.
The PCB itself may be cheap but the interfaces (LCD screen and keyboard are expensive). With Govt of India launching a $35 tablet ( AAKASH) which is much like today's state of art tablet PC , where is the market for such tiny devices?
Just let you all don't get too rosy and be aware of the possible negtive impact.
the developing nations need to take protecting measures at the same time when introducing new techs.
ie. china get hooked with internet and banned google for good.
This looks like a fascinating way to get people, especially young people, more interesting in figuring out how computers work and how to make them do more. In general, it looks like a really nifty little device and I hope they are successful. As far as worrying about them being used to view porn, I think I would be more concerned about "normal" PCs being used for that, because people using this are more likely more interested in figuring out what they can use it to accomplish.
I get the sense that it's meant more to encourage tinkering and that the idea behind it is: If it's cheap, people will buy one... and then figure out what to do with it. It's meant to stimulate interest, especially in young people. If you buy a $1500 laptop, you're less likely to tinker with it for fear of breaking it... but if you can buy a cheap PCB that plugs into any old screen, why not?
This sounds like a neat toy. However, it's not clear to me that a person who can only afford a $25 PC has an LCD device and keyboard to connect it to. People in developing countries? Somehow, I suspect they need to get their hands on real horsepower. Is there any reason that Raspberry Pi can't run a server farm so that people could log into a real computer? With real memory, and backup. Make real computing available on shared resources, not on really small machine of more interest to hobbyists and experimenters.