I have a feeling this project is going to die for the same reason the Touchbook and Pandora did.
That is, geeks are really bad at business; they don't know how to market, sell or price a product. The result is a never-ending series of revisions, pushed-out release dates, pre-orders, and they never actually ship a worthy product. Usually this is because they under-price the product; charging what they think it's 'worth', or what they would like to pay for it, rather than what the market will bear, and thus they don't get enough early cash flow.