That's very interesting. A CR-48 looking, basic laptop with workable keyboard and trackpad. Chrome/Chromium OS (similar to CloudReady) since all the schools are on Google. If they could get it to $249 with reasonable performance, they could crush it.
Since we’re fantasising, I’d say a bare metal Linux distro — or a fork of Chromium OS — running as web client for AWS Workspaces. The downside is that you need an Internet connection at all times, and possibly a subscription.
They couldn't convince developers to publish applications to the Amazon Store, which meant that the device was substantially less useful than a Google Android phone.
Wait till you hear the best part. Like the Kindle, they will ship it with ads as screensaver. Additionally, you will receive promoted notifications once in a while.
You pay 529.99$ upfront, or a monthly subscription, in order to remove the ads and enjoy your O.S. powered by AWS Workspaces.