The new model differs only in the processor, so your job is not going to be wasted at all. Also the new model is still at the B-boards and with several problems. ( I think they have only ~100 of these machines and still rewiring things around...). Finally the 1mil+ machines out there (your target ) are like the ones you got.
Yes, Sugar is everything Puppy isn't
Slow and cumbersome with a UI aimed at elementary school kids that never saw a computer in their life. However, when you try to build a system that kids will be free to mess with it as much as they want and still will not brake, they can form ad-hoc networks without an AP and still be centrally controlled and secure, you may end-up is such a thing...
Now transforming this elephant with a heart of a Cheetah to a herding dog is a real challenge (I like all 3 animals for what they do)
PS:
The power supply is 100-240V input. You need to buy 2 x$.05 plug adapters to fit the wall plug.So no I have to go out and buy 2x 12V adapters
Also the XO has a really strange size power input plug that does not match any of the common laptop or other transformer plugs (big story... so will not be stolen etc...)