I understand all the words in this "announcement" (quotes are the media's) but the real meaning eludes me, perhaps because it reads like one big excuse with no actual substance.
After careful consideration of the results of extensive investigation, we've concluded that, due to hardware design costs, operability, performance, etc., that it is not realistically possible to update [the IS01's android operating system].Like I said, I understand the meaning but there really is no meaning. Well, I guess the meaning is thanks for buying, hope you enjoy.
Mr. Komugi put together a summary of IS01 hacking. I emailed him for clarification, but haven't heard back yet. Either way, while he can 1) flash a new recovery, 2) get busybox and 3) superuser permissions installed, as well as 4) setup swap space for virtual memory to increase performance, the NAND protection on /system has NOT been defeated. No flashing of ROMs. No Froyo. And you have to re-hack it every time you reboot.
You can keep track of progress here at the IS01 wiki. As of today under "rooting progress" (進行状況), ROM flashing (defeating NAND protection) is listed as not done. [ROM焼き (NAND保護の回避) 不可（進行中）] When it is listed as "可能" IS01 owners have reason to celebrate.