I don't see it. Base model Pixel 7 can be found in multiple places for $250 right now, so you're not coming in much cheaper than that, but more importantly, I don't really see a whole lot of demand for a second phone even as a cool toy. This feels like the type of thing people would buy, play with for a week or two, and then it would end up in a drawer never to be used again.
At the moment your right, but as Google starts to implement LLM assistants into their product it's going to eat this things lunch. I would guess maybe 18-24 months max before Google assistant can do everything this thing can and they already have a phone at a similar price. Once that happens, I just don't see what niche this fills into other than "it's not Apple or Google".
