Dear Mayuresh,
A more powerful device doesn't mean more power in their hands. You could give them a p3 but that p3 will only have value as long as they're actually getting something out of the power. I did see the simputer at IISc in Bangalore and from what I could see, this has tremendous value as a information dissemination device. Philip was right in saying that the primary use is likely to be for output rather than input. This is definitely not a pathetic product.
You should check out this India today article http://www.india-today.com/itoday/20010219/adapters.shtml. It shows fisherman in kerala using GPS positining devices as well as cellphones. Wouldn't you call a GPS tracking device a sophisiticated device? I don't know its price, but its likely to be inexpensive. It has proven to be invaluable for these fisherman -- even saving lives. They have learnt to use this device (whatever the interface) and they also know its value. Please don't make the mistake of assuming that since they're poor and illiterate, they cannot ever learn to use a simple device like the simputer.
Relevant question here is whether there will be people who are willing to manufacture the device and also provide the content that is essential to the receiver of the content. I don't think a farmer in North India would be interested in the prices of fish down in kerala. The device is here as it the technology, but when do we see it in the hands of the masses?
- Mayank