Intel's Low-cost "Diamondville" CPU for OLPCs?

The OLPC and Asus Eee are garnering a lot of attention.  Might Intel's new Diamondville CPU be just the ticket for upcoming versions?

The first detail that Intel's Anand Chandrasekher announced on Monday in an interview with IDG is that Diamondville is a Silverthorne derivative. This tidbit clarifies the confusion around Mooly Eden's comments back in October, when the vice president's comments about Diamondville and OLPC set off a round of press articles claiming that Diamondville would be a "new architecture from the ground up" designed for OLPC. I talked to Intel the day after those articles came out, and the company clarified that the "new architecture" was a low-power, low-cost derivative of an already announced product, and that it would have wider applications than just OLPC.

Intel might shoot for other applications for Diamondville as well, but since x86 compatibility isn't a big issue (or selling point) in those other appliances, it may have a hard time vs. other manufacturers.