If they can keep it priced at $90-100 and it functions well as a media box (Netflix, 1080p streaming) and also plays games/emulators (hopefully without any kind of modding) and provides developers an in-expensive console platform to test it's games I think it's great.
It's definitely not going to be a PS3/360/Wii killer but if I was choosing to buy an Apple TV, Revo, similar media box, or this OUYA gaming console. I would probably go with the OUYA.
Edit: Backed this project.