That's right all around...
The SugarOS website says that SugarOS is an operating system for a PC, that is for the x86 instruction set. ARM processors do not use x86.
http://en.wikipedia.org/wiki/X86
There are linux distributions, Debian for one, ported to ARM processors, but that does not mean that any one of them will work on a particular device having an ARM CPU, although linux may well run on a regular netbook with an ARM processor.
ARM is group of processors, all sharing basic features based on the licensed technology and designs of the company ARM Holdings. Each license holder may modify the standard design as needed, building their own custom ARM CPU. This does not make it immediately and automatically easy to install something like linux on any ARM device at hand.
Schools have no money. Not now and not in Maine. Given this, you could try to search for information on linux on hand-held devices, but I fear that you won't find anything nearly as good that is cheaper than a mass produced netbook, a netbook that does more and more in a standard manner, the standard that is within a body of documented knowledge and already shared use experience. You may well be able to find some device less expensive than a netbook, but even with linux or some other operating system installed, will it deliver the minimum utility needed for an expenditure of money?
In addition to SugarOS, have you looked at something like Skolelinux. If you are going to have to spend money on a PC netbook, even a cheap one, the possibilities of what to install on it are open to more than one choice. There is a lot of interest in and development of education software for linux.
In some circles, this form of argument as blandishment is known as temptation.
http://distrowatch.com/table.php?dis...ion=skolelinux
You could also think about collecting as many desktop PCs as you can scrounge and putting the parts together in several linux systems for school use as a supplement to and partial substitute for a take-it-home device. This is a good learning project for any group from 10-12 years of age, as a class or after school.
Linux runs almost anything, everything; there is no need for drivers, there are no license fees, and there are perpetual hardware upgrades - newer hardware thrown out every day.
Once lived in Maine. Fine ocean. Now live in Denmark. Have it here too, different side.