Well ARM have the same problem as MIPS but with better support. The problem
will always continue to be the GPU, even with the new Loongson CPU's with a
better (existent at least) GPU Support it isn't free at all. Is is true that
this is an explorable field for Free Software, but there are too many things
blocking the way (mostly Blobs).
I don't think it is impossible, but it need a further look at it. I think I
will need to "waste" more time looking at both of them and looking at what is
proposed in the ARM world right know. Personally I think that MIPS has a
great future if it is improved and if it is oriented to Free Software, not
only would this help the image of that almost unknown CPU but would also
raise the search for it (which would provide better support and better
features.
As for the outdated OS, I don't think this is an issue, Free Software is
always Free Software, and it is easier to "solve" by changing and updating an
old OS which is Free rather than a new which isn't. But that's another point.