Here is a blog entry (in Spanish) from 2009 in which one of the responsibles comments on the conversion of the original PCs into thin clients:
I don't know what the automated translation looks like, but I can tell you that
a) LinEx was not a "ridiculous incest", it made sense big time and also was more than just the distro, they put a free-software-based-PC every two under-13 school kids, they put the same PCs in every public library in the region ("Nuevos Centros del Conocimiento", New Knowledge Centers), they created elder-persons computer-literacy programs and more...
b) how can they "suck in public money" if they were the very public administration? They stopped giving away public money to (US) private companies, and created a public entrerprise to create a public-interest, publicly-available, free-as-in-beer-and-also-as-in-speech region-wide computer network with public access to the internet.
Please allow me to make a few clarifications on the subject, because there are some additional facts related than can be missed if you didn't read TFA and TF(Spanish Newspaper)A linked by TFA:
Does anyone seriously want to watch full length TV shows in a tiny box in their browser in crumby YouTube quality?!
What else can you do during your boss' lunch time?
Oh, so there you are!