I'm not saying this is a good product. I'm not sure it is. That is besides the point.
I think the point is that it is a different approach to what the Archos 9, a Windows tablet. This is a browser in a box. Maybe browser in a box isn't a good idea. Maybe it will bomb.
There are two main features/bugs to this: Browser in a box & tablet. Saying "why does it only browse the web?' is like saying 'Why doesn't it have a keyboard.'