This is my concern, as well. I love food. My family loves food. Most people, even in developing countries, would prefer actual food to a nutrition shake. Culture, family, community, and love are all bound up in our relationships to eating. Bachelor chow is all well and good, but it won't save the world.
That said, Plumpy'nut and other RUTFs have done amazing things for the neediest people on the planet, so I'm not as willing as other HNers to throw the project entirely under the bus. I am interested in how this product compares to what exists.