Yes, it runs linux, albeit a gimped one. I honestly think Hildon is one of the worst interfaces ever...
The apps available aren't too fantastic either, and many are still too beta to be useful. While i understand that it is still relatively new, but still, Nokia should have given out more development sets or done something at least.
I read this article by a guy who worked on the MessagePad just yesterday, and i think it made all the sense in the world. Maemo should really listen to it.
When June break comes for me, I'm gonna break it open and start working on it. I think if we achieve 3/4 of what the guy above said, it would be much much better already.