It's got 512MB of RAM now. That's as much as it can handle. There was talk about replacing the SoC with something better, but before their population factory in Texas screwed them over they bought thousands of the current one. Need to use up those before moving on to something new, unfortunately.
For those saying that it'll "never sell", it has, it is, it will. What most people seem to keep forgetting is that this isn't Nintendo or Sony needing to sell a million units before it becomes a success, this was 4 guys building a device they wanted: minimal overhead and mostly off the shelf parts means R&D costs were fairly low. Unlike Nintendo which is a failure if it isn't selling tens of thousands of units a week, the Pandora only needs to do that once in its entire lifetime to be a commercial success: ten to twenty thousand units is paltry compared to the mass of the internet.
Pardon me for using an age old rhetoric, but if you have no problem using touchscreen keyboard and game controls and can think of no reason why anyone might possibly want the features the Pandora offers which are not available from any other system currently on the market, then the Pandora "isn't for you". It is very much a niche product pandering to a small margin of people that DO want the features it supplies. Please stop trying to take away our fun with your misplaced arguments. If it isn't something you're interested in, fine, don't buy it. For what I do, a bluetooth keyboard would be too cumbersome, I need the device I can take out of my pocket and just go to town with, and many other users have their own use cases which you completely undermine simply because it isn't something that interests you.
To use an analogy, the after market for spoilers is small but still exists. Whenever I see a tiny Toyota with a spoiler on the back, rare though it may be, I laugh inwardly and wonder why someone would need such a thing, but the person who installed it has their reasons and it isn't my place to judge what they think is cool or not. Sports are another one: some people get really hyped up about what I see as just a game, and I boggle at the memorabilia that people buy, but that's because I recognize that die hard sports fans are not me and I am not them and they have their reasons for liking it beyond it being just a game that I couldn't understand. I could go on and on with examples of things that suit many people just fine that I would never get because I don't need them, things that I am not the target audience of and could never understand the reason for, yet demand exists so the market fills it.
The market exists for a device like the Pandora, even if that market is relatively small and most people don't understand it. I support the device because it does everything that I want to do right now, and I want the people that made it to see it as a viable and possibly growing market so that they will eventually make a new device that will meet any new challenges I might have in the future. Right now, even four years after I learned of the device and 2 years after I received it, it still does everything I need it to do, and has been well worth every penny paid.