ok people, first about India:
It's bloody complex. A majority are poor, the city dwellers and landlords in the villages are well off. However, because the country in general has been poor for a long time, it's built-in to people to put survival ahead of luxuries. Tablets for most here are an extravagance. Plus, while cellular connectivity is good, Wi-fi and the internet are not so good. Wifi is common in cities, but rare in general.
So now, will it work? It can, really. Not every student can afford an ipad. Apple sells them for more here. Most people here would prefer a laptop/desktop over a tablet, or even a smartphone, because they're more affordable, have been tried and tested, and look like more than a toy. Thus the Ubislate 7 (Aakash 2) has a lot of scope, it's cheap and as good as an ipod touch (except the screen), has Wi-fi and is GPRS enabled, one can use a 3G dongle to extend connectivity as well.
And there's a difference b/w pre-ordering and booking, Ross! I know you make an amused note about this, but here it's quite common to "book" a car, for example. they've just done the same thing.
And Aakash means 'sky', btw.
Another great thing that i foresee happening is that a lot of budding Android developers will get an inexpensive opportunity to experiment with their ideas.