We knew something was bound to arise out of the news that Intel was lending it's support to the OLPC campaign and now we know what that something is. Apparently Intel's current (vast) range of processors doesn't offer anything suitable for the XO, so, rather than try to re-jig an existing design to fit, the company will be creating a new processor from the ground up for the system.
Of course other systems will doubtless also benefit from a low-power chip. The UMPC format, for example, which currently uses low-power Core-architecture processors would almost certainly benefit from such a chip.
Currently the XO uses a 433MHz AMD Geode LX-700 processor, so obviously it wont be until the XO-2 that we see a change. However, with the current generation machine looking to cost more than double the intended $100 asking price there is evidently still room for improvement. Intel plans to debut the chip at next year's IDF in Shanghai, which takes place in April, so presumably the design gurus are already sweating over the new architecture as I write.