I've been following this project a bit bit which seems more real: http://www.openmoko.com/

That project has hardware you can buy now: FIC Neo1973
It seems more open than Android, because it won't be locked down by the vendors.
It is structured much the same as the OLPC: one core group of developers and a bunch of volunteers.
Here is a nice article from the openmoko point of view: http://mobilemoko.net/2007/openmoko-and-googles-android-race-to-mobile-20-version-01/

But the openmoko project doesn't have solid java support, so android (if we can get our hands on hardware)
will be better for that.