I would expect this to compete with normal PC sales, it's essentially a hobbyists computer, I'd imagine this isn't going to be the quickest device, but could be good for slim devices, interactive advertising, lite web browsing, mame, firewalls/routers etc..
But it's not going to replace the family PC, it's marketed to get people interested in tech not to be a fully featured computer..
For £22 I might get one to have a play with