1) If you want good linux support, buy a PC instead. LinuxPPC is the least supported port and supports the least number of peripherals and cards. I don't know what makes you think the A1/Teron is more supported than a PowerMac, Linux/PPC has been running on PowerMacs far longer and Apple's hardware is better quality.
2) 10.2 doesn't run all that well in MOL. Actually it runs like crap. It also can't 'do' as many things in MOL than if it were running on its own. Kinda hard to be a "digital hub" if you stick it in a virtual machine.
3) Nobody is drooling over your 700mhz A1. I'm typing this on a 1Ghz PowerBook.