I would prefer to see OLPC provide a path from the XO to a full blown Linux distribution
Did you watch the video? He said that you can easily switch to gnome.
"The way we look at it now, Oracle is preventing us from demonstrating the compatibility of Apache Harmony," Geirr Magnusson said. "Oracle is now ensuring that we can’t prove compatibility, although it our sincere intention and desire to do so."
This is an unauthorized cybernetic announcement.