I flashed the latest OZ/Bootstrap just to give a go to the 2.6.16 kernel (being a pdaXrom user actually); I must say it was rather impressive, the device has no suspend problem of any sort, it's fast and not too much memory hungry.
However, altough I carfully resized to root partition to use all the space before flashing, it seems like the MTD definitions are hard coded in the zImage. I found a configure option in the monotone/BB tree to set the home size, but it's really painful to force the user to use 60/60 by default (and building OZ only for THAT is beyond simplicity). Or did I miss something ?
ipkg 0.99 is absolutely TERRIBLE as well. I wonder how come it COULD be so slow ? And the tarred ipks were much more convenient to handle ... well, anyway, if you want to stick with that. Other than that, OZ has greatly improved in a short time, especially the kernel.