The patent adds that making the device look "cute" should encourage even the youngest members of a family to interact with it. But Mikhail Avady, from SmartUp, said he thought it belonged in "a horror film", and the campaign group Big Brother Watch has also expressed dismay. "When those devices are aimed specifically at children, then for many this will step over the creepy line," says Avady. "Children should be able to play in private and shouldn't have to fear this sort of passive invasion of their privacy."
The Neo900 is the spritual successor of the Nokia N900. The new circuit board can be placed into an existing N900 for better specs (faster CPU, more RAM, LTE modem) than the original device while still maintaining fremantle (maemo 5) backwards compatibility. Alternatively, a fully assembled phone can be purchased as well. The Neo900 will be fully operational without any binary blob running on the main CPU. While the modem still requires a non-free firmware, it is completely decoupled from the rest of the device (think of a LTE usb stick you put in your laptop) and can reliably be monitored or switched off by the operating system.
You can follow the development of the project in the maemo forum, read about the specs of the device or consult the FAQ