I don't think there is much to say about the OLPC/Intel deal. OLPC needs to get enough orders to go into production, and Intel has at least come close to stopping that from happening, as in, game over, turn out the lights on the way out, it was fun while it lasted.
Intel wants a slice of the pie, should the multi-million unit pie start shipping. It isn't like there is a conflict over pedagogical strategy between Intel and AMD. They're both just trying to sell chips by any means necessary.
I do think that the idea that the Classmate is more appropriate than the XO in certain markets is a joke. Yeah, give me the one with the shorter battery life, no mesh networking, etc. If the XO works, there won't be much question about which is the better design.