Hi,
First of all, when I designed (some inputs from our colleagues) in Sept, 2009, we never imagined to beat any iPAD or even laptop. We were just worried about cost (cost was based on supplier in China). The speed was 600MHz (Not comparable to any Intel/AMD device) but surely one can run the basic app. The advantage we had, was to exploit the multi function pins of the processor where you can connect some more peripheral without any additional cost of the controller.
I think these are great projects. No one claims its goal is to "beat the iPad" - whatever that even means. Sure, for $35 its not going to be as fast as an iPad, its not going to have the best screen and all that. But, if it work, it gives people access to technology that would ever buy an iPad, or even a netbook.
If you can make a good web browser and email app, it will be a great success at $35. Throw in a MP3 and video player and you've got something very useful for not much money.
Yep it's the Internet access which is the key to these devices. India has a very internet savvy population so I assume that access is fairly widespread. I can see them easily reaching their production targets.
