Earlier quoted context omitted.
I too have had problems with reliability, though more so when the device has already booted. e.g. numerous times I've had the device completely hang during file access. When problems such as this crop up it really puts a dampener on the experience.
brand of flash matters. before the raspi came along and popularized arm computing, there was a very lively scene around arm hacking out of existing devices. sheevaplug started the trend and people found that things like the seagate dockstar (a nas based hard drive dock) could be easily modified to boot a linux distro from usb and run as a low power headless server. we kept a list of results from our experiences of wh…
Not to be pedantic, but before the Sheevaplug, there was the Linksys NSLU2, which came out in 2004: