New language for kids: Scratch - Logo meets Squeak Smalltalk?

I had first heard of Scratch as being a candidate for MIT's $100 laptopfor the third world. It appears to be a mind-meld of Squeak Smalltalk (the implementation language), Microworld Logo and the Lego Mindstorm's visual programming environment.

Here is an early paper on the language and here is the (even earlier) proposal.