Linux, to me, means the same as a linux desktop only in your phone.
That would be the ideal and as close as I can get to that the better. Like I said in a previous post, on my desktop I have puppy linux, a 100Mb live cd which contains almost anything that I could possibly want.
Do I really have to explain what linux means ? a linux box you know, configure make install, double click the package, google something the shell says when it doesn't work, all free, request a feature, report a problem, change to the way you like it, ctrl-alt-bckspc cause you broke it and killall of it now instead of being asked "are you want to close it ?" you know what I mean linux. linux linux that's what I mean.
I do understand that, sadly, most consumers do not wish for the same, and in fact the word "Linux" is the kiss of death to any product in most cases.
Openmoko - uber geek, wish I was a guru so I could tell if it's for me.
N900 - using it, loving it. Not perfect but it is the only one that fits. can do all you said about Xoom, without telling google about it.
The N9 does not need services to be successful, nor does it need apps or software updates. Only marketing.
All it takes is one nice looking girl to hold it, smile to the camera, and say "this is cool".
Do you really think people walk into a store, point at something red and shiny and ask "will I get software updates a year from now"?
They just see facebook/tweeter/somecrap logo and they buy it. No services asked. Where is your 5 steps now, huh !?