Linux--The Internet Appliance?

There has been talk about $500 appliances for connecting to the Internet. Were those people talking about Linux?
This Is Called Win-Win

There is a real chance for a serious win-win situation here. If all goes according to plan, there will be millions of new Linux boxes out there in the world, millions of people will get Internet access at a lower cost than they would have otherwise, some hardware manufacturers will make money, and some money will end up in the hands of people who worked on the software. For the long-term, these millions of new Linux users will soon want to buy that word processor, spreadsheet and personal information manager. Everybody wins.

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Phil Hughes