Reminds me too much the Palm Foleo for me to bet on its future.
Regardless of what you find appropriate, there are people, that spend 100000$ on,say, a home stereo without blinking an eye.
Designed products, that do not hit the mainstream, still has a market. If you doubt it, try sneaking in at DCOTA and find any item under <$5000 ?
There are indeed brands that never hit the mainstream, but each one of them has something behind it, be it history or an outstanding commitment to quality.
Mind you the Palm Foleo I mentioned came out in a time Palm still had some glam associated with it.
This is just a computer.
I like the litl's name and website, but I'm not going to bet on whether it has broad appeal. But if it does, if it's high quality, I could see it selling well, once the price goes down a bit.