Business models, like business plans change or sometimes go right out the window. What were Google's or Facebook's or MySpace's business models when they first started?

I would completely disagree with you that the Give one Get one campaign is a failure of OLPC's business model. Rather it is a very clever add-on. A lot of tech nerds REALLY REALLY wanted to get their hands on the machine and had been begging Nick Neg for the opportunity to have one of their very own. (I bought one the first day the program started as did many bloggers from what I can see.)

Rather I would say that the campaign is a testament to the success of the design and implementation of the system that people in the first world are essentially willing to pay double the price for an item designed for 3rd world consumers.

Also given the current price of an iPhone or Amazon's Kindle, the $200 pricepoint of the XO-1 is amazing given what the machine can do and its durability. I think it is somewhat of a humbug to fault OLPC for not getting to $100. It's like faulting an engineer for was shooting for a supersonic plane, because he only made a much better 747.

It should be noted that the fact that it hasn't been able to start at $200 doesn't mean that it won't one day end up there. How much was a VCR when they first hit the market.

It's early days yet.