The tplink wr703n is a 400mhz MIPS computer with a USB port, an Ethernet port, and wireless networking which sells for about $20 (on volumerates.com, which is unfortunately down at the moment). It has a completely functional Linux port and is supported by OpenWRT. Not as fast, and fewer peripherals than the Raspberry Pi, but an indication that the $25 price point on the pi is doable, I think.
Amazing to think the impact of these low-cost computers.. goodbye expensive routers, NAS, set top boxes, PVRs, media centres. It can't be too long before they (ARM devices) start eating into the low end laptop market.