Right now it's impossible to run X as a non-root user, because the calibration is horribly off toward the lower-left.
Maybe you could have xrandr run suid by default, so that auto-rotation would work? Ditto inputconfig.py, lightnpower.py, etc.
That'd make the lives of people who don't want to use the root account for everything easier.
Please also update /usr/share/terminfo ... The current terminal choices are terrible. Aterm should use "xterm-color", and the normal terminal should be something standard, not "builtin_ansi", which vim doesn't recognize.
Overall, I'm pleased with this release. Everything works to some degree out of the box, and the bvdd video driver gives MUCH better performance than SDL.
However, it annoys me that I have to do so much hacking around to get basic system functionality because of the poor quality of the included scripts (setting a PKG_CONFIG_PATH, altering the PATH to include gcc executables, setting CFLAGS and CXXFLAGS, etc.) and the lack of some essential utilities (for a device like this, is there ANY reason not to have "less" and "locate" installed? You could take out dillo2 and put in perl... I mean, why have three web browsers and no copy of the essential scripting language?)
In addition, you're missing one of the most basic parts of a PDA distribution: handwriting recognition. Xstroke or the like should be integrated and always available.