Just in case anyone here is interested in taking such a distribution for a spin, RedSleeve Linux is now on public alpha release. It is deemed an alpha purely because the packages aren't signed yet - other than that, I have been using it for the past few months on my Toshiba AC100 (Tegra2) and various Kirkwood based devices (Sheeva/Guru/Dream Plugs). It should also work on D2Plug and any other ARMv5 or later CPU.
Blurb about what/why/who is here:http://www.redsleeve.org/about/
Info on where to get the rootfs and packages and sign up to the mailing list is here:http://www.redsleeve.org/2012/02/12/alpha/
Please take the rootfs for a spin and report success/problems/suggestions/fixes on the users mailing list here:http://lists.redsleeve.org/mailman/listinfo/users