> if you run everything as user olpc and user olpc can become root without a
> password, getting olpc is as good as getting root.


An arbitrary process running as user olpc should not be able to get root. My
impression is that it cannot, currently; am I wrong?

>
> not to mention the fact that you would need to audit every program to see
> what it will do with the data you feed it (if anything reads something from
> a file and then executes arbatrary commands based on it, you've lost)
>

If it switches to run as another user (or otherwise reduces its own
destructive capabilities) before doing so, not so. This is the principle
that Bitfrost is built on: ways to run untrusted code.
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