If they make their price competitive, I think they might just have a chance. Remember, at the Microsoft has announced the "Surface", but isn't really releasing it until several more months from now. AND they forgot to mention what the price is going to be. They also forgot to mention how long the battery run time is. If it isn't in the 10 hour range, it isn't going to cut it.
It is going to depend on how good of a support they get from the app development community and how much they are going to charge for the apps. If their apps are as expensive as some of the software they have sold for the PC in the past, they aren't going to last.
The unit does look good, and the built in magnetic keyboard is a plus. If they can convince the user population that this tablet can be used to replace their laptop, then they might just have a winner.