This is not a heavily modified version of Windows XP, its Windows XP Embedded
A Windows version that has the actual Windows branding removed and does not boot into the normal desktop certainly fits my (and most likely Microsoft's) definition of "heavily modified".
Now if you're okay with making up your own licensing terms, I won't try to convince you otherwise. I'm just saying a stand-alone distribution would be an even dumber idea, so people should stop asking for it.
So its $110 just in hardware
I arrive at $95-$105 when adding up your numbers?
This is an affordable way for someone who cant afford a real amiga to get the experience of having the amiga like experience.
The really affordable way is to just buy Amiga Forever and use the included
KX Light - it uses Linux (a modified Knoppix, to be precise) to achieve what you are doing with Windows XP.
As far as speedwise it runs games just fine, these are fine tuned systems fully tested before sale.
You did (again) not reply to som99's remark about the processor used in these thin clients. Care to comment?