I do remember see Redhat in the software rack at Wallies last time I was there, so I have surely underestimated a paying segment of the clientele. The world's #1 retailer surely wouldn't offer products that won't move. They may be (quite intelligently) angling to the existing installed Windows base who own Win98 or better, and are quite happy with Quicken 99 and Office 2000, but would like a faster machine, USB etc, but don't want the learning curve of hardware tinkering, or the privacy concerns of XP and Media Player, From that persepctive, its not a bad idea.
If Joe Sixer wigs when it won't run out of the box, he'll take it back to Walmart first, and pretty soon they'll have a big red sign saying 'no dummies'.