Hey sashz,
I played with OZ/bitbake a few weeks ago and while the userspace stuff has a long ways to go, Linux 2.6 seemed a lot snappier and included a GPL version of the SDMMC driver (solving the I/O error on resume once and for all).
Is it a huge deal to get pdaXrom running on top of it instead of 2.4? Admittedly I haven't tried yet but I recall there being at least a video patch or something in there for the X server, and doubtless others.
