It seems to me to be a bit of publicity-seeking by Red Hat.
Red Hat's "offer" of giving software to schools is disingenuous as Red Hat and Linux apps can be downloaded and free support is already available on their web pages. Presumably everyone knows this.
Red Hat's suggestion that the MS settlement for the private suits be restricted to MS providing hardware might have some validity (though one might wonder whether PC vendors which are hurting due to slow sales would welcome even fewer sales to schools - since presumably MS would just provide more nearly obsolete PCs rather than purchase new ones). That is well worth considering. But the best solution to this problem (MS overcharging for its OS) seems to me to financial - not MS deciding what hardware it wants to provide. MS should have to pay a substantial fine, IMO.
The tobacco companies paid and will pay substantial penalities to the states as a condition for settling the class-action suits. They won't be giving discounts on cigarettes or providing nearly obsolete medical equipment to clinics and hospitals....
The way the Red Hat person explained the offer makes it seem to me that he doesn't expect the court to take it seriously.
So I can see some merit in Red Hat's proposal (yes, MS shouldn't be permitted to extend its monopoly power even farther as a "punishment"), but I don't think it's going anywhere. And I don't think it'll be an appropriate settlement for MS's actions.
My $0.02.
Cheers,
Scott.