I have an OpenPandora. Using it without proprietary software is certainly
possible, but a lot of work.
The only proprietary components in the Pandora OS (which is custom by
necessity) are an OpenGL ES implementation for the PowerVR GPU, and the
firmware for the wireless. Removing these pieces is simple; they are
contained in packages which can be removed with these commands:
opkg remove pandora-firmware
opkg remove libgles-omap3
However, there are a couple of additional problems which you have to deal
with.
Firstly, the place to get additional programs makes no attempt to separate
libre from proprietary software. It's called the "repo", but it's really more
like an app store that anyone can upload to.
Secondly, the way the proprietary OpenGL ES implementation is used is
simplistic; any programs compiled for the Pandora link directly to it, rather
than through something like MESA. As a result, some programs simply don't
work without OpenGL ES, even if they in principle could make do with pure
software.