Came across this little curiousity in today's herald tribune (see http://iht.com/articles/2007/04/02/technology/neuf.php ). A major French ISP has started renting low cost information access devices running linux. I wonder how long it'll be before they do a google apps bundle?
Certainly it's an interesting application of the 'nearly a thin client' model to sell broadband, the inbuilt software is there only to make the box seem usable as a home computer. Of course you could buikd your own using damn small linux and boot it from usb drive or whatever
(More details at http://www.groupeneufcegetel.fr/dyn/File/presse_en/060921CP_Easyneuf_EN.pdf : if you can read French googling for easy neuf brings up a range of other links)