Yeah, I saw that project...it'd be nicer to have it properly contained rather than that loose mess o' cabling, but it could probably serve as a starting point for fitting it into a real laptop casing...
Not quite sunshine and rainbows as this isn't full Minecraft. From what I can tell it's the Android/mobile version of Minecraft with some modifications to allow you to interface with Minecraft through some form of code. You can LAN like usual, but only with other MinePieCraft players. Meh.
Cheaper but still buggy. At least the Raspberry Pi Foundation seem to be taking the USB problems seriously now. I still don't believe they will ever be truly solved though.
Does anyone actually want this? Judging from the official forums there seems to be very little interest. Of course if USB actually worked properly on the Raspberry Pi you would be able to use any standard USB webcam without issues.