a very odd choice
What "choice"? You're probably talking about Broadcom-provided SoC originally designed for digital settop boxes, so HDMI was probably already there (complete with content security features demanded by the main customers) (and VGA wasn't.)
Its cheap because its little more than the Broadcomm SOC, so if the SOC does it, the Pi does it. Think video streaming box and it being plugged into a modern telly which is what it was designed for. The cheap educational computer bit is a sideline..........
Can't wait for the eBay flood of Pi to begin. Loads of people without a clue will have ordered one and they'll either hit the desk draw or the bay 
Well yeah lots of people will buy one for the simplicity and never touch it again, which could ultimately be it's down fall, too many people who really have no clue just buying it for price and oh that's cool, shame I have no idea about any of it, and i'm hoping some of them will learn how to use it, but buying one of these to get kids programming just can't see it happening personally.
but buying one of these to get kids programming just can't see it happening personally.
The problem is that a lot of teachers in UK schools are quite poor at the subject they are supposed to teach and many will not let the kids have exposure to something they don't understand on their machines in case they "break" them.
Otherwise Processing would fill the bill nicely.
With the Pi they can isolate programming kids from their expensive machines.
I doubt you could break the machine if you gave the kids VB to use... and if they could i'd be interested how lol
That is precisely not the point. The teachers THINK they can break it. I said they were poor.