Update: the EE Times has a great, similar article on the OLPC fantasy vs Apple reality.
So, the XO-2 has moved from promise to hope to scrap, and has made way for a tablet-style,
iPhoneiPad-like XO-3 (Read about the 3.0 model at Forbes and Engadget, with the now-in-production 1.5 and the in-planning 1.75 XOs, both using the current design but with faster processors.
OLPC, and Nick Negroponte in particular, love to use conceptual designs to create excitement. This works great in normal, commercial development a few times. Once you miss a few targets, people react very negatively too it, even if you do finally release a product. Why do you think Apple pairs announcements with already-planned release schedules?