Yahoo News has a story about Criag Barrett pooh-poohing the idea:
“Mr. Negroponte has called it a $100 laptop — I think a more realistic title should be ‘the $100 gadget’,” Barrett, chairman of the world’s largest chip maker, told a press conference in Sri Lanka. “The problem is that gadgets have not been successful.”
Barrett said similar schemes in the past elsewhere in the world had failed and users would not be satisfied with the new machine’s limited range of programs.
“It turns out what people are looking for is something is something that has the full functionality of a PC,” he said. “Reprogrammable to run all the applications of a grown up PC… not dependent on servers in the sky to deliver content and capability to them, not dependent for hand cranks for power.”