How would one go about setting this up in their own house? Privacy concerns aside, I can think a some cool uses for this (more finely-grained location based reminders for instance).
I believe Ixquick blends results from several search engines, like an aggregator. Startpage is by the same people but only includes Google results. It also has some Google-specific features like date search. The difference is pretty small though.
Why? I doubt it has any negative impact on Google if a tiny fraction of their users go through a proxy, and I'm having trouble thinking of another reason to oppose doing so.
Basically, they have CyanogenMod 7 running on it, but there are still some kinks that need to be worked out (a few features aren't working yet, video isn't perfect, etc.)
The memory problem is pretty serious. I've been using the Memory Restart addon (https://addons.mozilla.org/en-us/firefox/addon/memory-restar...), which shows memory use in the bottom corner and lets you click to restart when it goes over a certain amount.
Couldn't they just attempt to fill the "outside" partition up? I mean, let's say you have a 1TB partition with a 100GB hidden volume inside. What happens if somebody tries to write more than 900GB into the outside partition?