I don't think the project failed at all.
It was quite an interesting and ambitious project at the time - the concept that a full PC could be manufactured for less than $1000. Many of us, at the time, said things like, "Think of all the cool things we could do with a laptop that only costs $100"... And you know, this was back when a laptop typically cost around $1000 or more, and was a complex computer.
Sure, it was ambitious, but it pushed the concept of a cheaper laptop for children far before anything in it's time, and first sub-$500 laptops came out.. Early small-screen devices with pretty good, if somewhat degraded performance.
And pretty soon the market realized that this was possible, and there was a market for it - cheaper laptops for kids and people who wouldn't otherwise use a computer.
So the market responded, and the capabilities that technology could bring changed. Smaller displays came out. Cheaper processors. Lower cost memory solutions. And people started buying these and pushing for embedded-able systems, and it happened.
Sure, OLPC as a product was a complete failure - they were like a pre-kickstarter project gone wrong - but they were the spark that lit the fire that continued to grow in intensity and they did succeed in one simply object just by existing - they re-aligned the market.
But, in a way, the vision they had wasn't lost. It was influenced, and it came to be... Just not with them.
So the end result was achieved by a failed project - which then brings up the question as to whether the project was to bring low-cost computers to children in third-world countries so they could change the world, or whether it was to sell laptops.
Because only one of those objectives wasn't achieved.
Of course, the Raspberry Pi was probably the spiritual successor to this concept and came out much later without the same fanfare and backslapping, but it did manage to succeed and change the world.
GrpA