A quick update.
I replaced Kubuntu 12.04 with the regular Ubuntu 12.04 (omap armhf).
Still using unknown's 2.6.37-n900 kernel, kubuntu integration deb and the fixes/workarounds from the install.sh script.
Only this time I used the firmware files from the Meego CE image.

- Wireless works like it should
- Keyboard is OK now (I can type numbers)
- Stable, not a single crash for over two hours

However it's still VERY slow.
It boots up fast but after login to Unity it will become a nightmare:P
Firefox takes op like 2 minutes to open, and 3 minutes before I can type in a URL
"top" shows me that Xorg, gnome stuff and Unity are taking up all of my memory and cpu usage.

I already tried setting elevator=noop and using ext4 for rootfs with noatime but no luck in getting it faster.

I'm going to install the Meego CE image onto my NITDroid partition and rip out the sgx drivers/xorg config to see if I can get EGL working in Ubuntu.