The OLPC XO effort was fantastic and developed some great technology AND a really neat little computer with the most open specifications ever. Sugar's software architecture is still not portable enough and that is a problem, but it is one that could be solved with programmer hours. You buy those with money, and SugarLabs is a charity. So, go code or donate, eh? I'll throw in on a bounty to increase Sugar portability. Get it to build and run natively (not X Window, mind ... there's some native GTK stuff) on Mac OS X 10.3 or newer and I've got $100 USD for you. I expect some other folks will chip in for a similar offer for a version that runs natively on Win32/64 (also no X Window, native GTK exists).
Now, where the heck is My TouchBook! On that note, how does Sugar work on armel, hmm?
Near: http://linux.slashdot.org/story/09/07/20/1628228/Negroponte-Sees-Sugar-As-OLPCs-Biggest-Mistake which is about http://www.zdnetasia.com/insight/hardware/0,39043471,62056166,00.htm