That's exactly right. The only reason the OLPC group set out to design the XO in the first place was that there were no computers in that size and price range at the time. They simply did not exist.
Well, now they exist. Cherrypal is selling them. They're not going to have the same kind of standardized architecture that the XO does, but nonetheless they're Real Live Computers that can run real operating systems (and by "real operating systems" I of course mean Linux).
OLPC ought to be putting educational software on those rather than blowing more money chasing this touchscreen pipe dream.