Maybe it's because this is the second phone they've ever done, and higher end hardware is harder to get at if you're a low volume buyer? Perhaps developing this has the given them the knowledge necessary to be more successful with higher end hardware down the line (which is undoubtedly harder to work with and more expensive to assemble and prototype.)

I'm shocked that people are dumping on them, despite doing what no other handset vendor would do and what OpenMoko never succeeded at.

I'll definitely keep my eye on their next hardware revision, with luck they'll leapfrog the N900 and come out with something slick next revision.