Kiosk is a valid idea.... check out this idea with Dillo
Here's an excellent application of the Linux kernel combined with Dillo.
http://www.linuxdevices.com/articles/AT2869412121.html
Bascially,
Anyone who has some gumption and smart, then that person could make a nice business using a re-mastered Knoppix combined with the ideas from that article.
Also, check out the 'on-the-fly' mastering of RxLinux. While not related directly to Knoppix, the idea behind RxLinux is cool.
One could have a business, say a 'Kiosks-R-US' business whereby you design some generic kiosk systems, e.g., library kiosk, Internet cafe kiosk, etc.
Then you sell a re-mastered Knoppix from a online configuation, i.e., customizing service. Simply, a person points their browser to your web based configurator (easy to build in say, Zope + Python). They choose their kiosk model, e.g., library kiosk. Your site dispatches a pre-made re-master to them via a link, after they pay you.
Of course, for more customization levels, you could charge more money, until someone gets to the 'ultimate customization' level, which would be an a la carte configurator. Simply, you would have to tweak your system to support the feature.
Good luck!