Paul, I think it's a little early to be declaring PIC dud; after all, it's kicking off a whole new concept and product.
Sorry to sound overly negative, but the concept isn't new. In fact, it sounds very similar to network appliances. Or the AOL-box, remember that?
The idea has been kicked around for years, especially by Cyrix, IDT/Centaur, and even Transmeta. People even in the developing world still prefer to have the real thing, and those who've never even seen computers before have more fundamental problems to overcome.
Tenchu