I missed that announcement today but it looks cool. Just being able to plug into any screen and fire it up seems like an excellent way to get people into Linux. From what I hear over there, the schools seem to be using a lot of Arduino for interfacing and more practical experimental uses.
I wish I had the time to get back to simply 'fiddling' again!
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I've not played with Arduino, but they seem cool. I've seen lots of cool things built around the Pi. It can be overkill for some, but it's cheap enough to not worry too much.