iGala Already Exists -- $239 (Score 4, Interesting)

Well, I know that by posting this I officially brand myself as a corporate shill, but here's a device that runs Linux, has a touch screen, has an open API, and already exists and can be yours for $239:

http://www.thinkgeek.com/electronics/digital-photo-frames/b425/

And you can use it as a picture frame out of the box. =)