I'm happy Mark Ahlness is having success with Sugar on a Stick in his classroom. However, it is important to keep in the back of our mind whenever we think or talk about students running their operating system off a USB key, or searching the web on cell phones in class becoming the default, or a school system moving all their documents onto Google, that these actions all indicate the failure of traditional IT in schools.
Sugar at least is designed for kids, and if fully implemented and widely adopted would be an unambiguous step forward beyond the status quo. But if you got in a time machine and went back to a technology planning meeting in 2002 and told the director of IT (if there was one...) that by 2010 the school district would just give up and throw all their documents on Google, you would get a pretty sour response. This is not the future they thought they were creating.