Personally I don't give a damn if it's ugly or not - just as long as it's functional, practical and usable.
The hardware specs look OK to me (provided they get the keyboard right of course), but that's the easy part.
The real problem, as always in the mobile Linux space, will be the OS and software.
As someone said, this has its roots in gaming machines. If it doesn't support something versatile and mature enough out of the box (like the Nokia tablets' Maemo environment), it will be Zaurus-land all over again : an official, vendor-supported OS that doesn't quite fit the bill for PDA users (in this case, a shell to launch emulators and games), and a dozen community projects launched to fill in the gaps, none of them with a hope of reaching end-user readiness some day...