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See http://www.pentile.com/technology.htm for an explanation of how it works. It seems plausible that they can get higher appearent resolution using this technique.
There is some additonal information on these techniques in the IEEE Spectrum article at http://www.spectrum.ieee.org/aug06/4269 In particular check out the link "Easy on the Eyes" in that article.
Edited 2006-09-13 21:53
Given software support for this subpixel layout (and that of the pentile), I can see a lot of potential for this, even in the general market. Subpixel font rendering has started to take off... sure Cleartype default sucked on XP, but with the optimiser gadget and on Linux or OS X it's pretty nifty. If this could be applied to the entire visible display area then great. The more research the better.
I belive the sensors in cameras already use layouts besides the standard RGB stripes anyway.
Even if the 100$ laptops turn out to cost 120$, there is no reason to say "overpriced" if a current laptop costs at least 600$ (you might find a REALLY crappy one for 450$). The current PDAs cost 200$ and they are farther away from a general purpose computer than the OLPC's are.
No, 100$ is not overpriced at all. Not for a rugged, water-resistent (when closed) and networked general-purpose computer. It might not be what YOU need, but please do not try to make the choice for someone who earns 100$ a month if you are in a much better position.



