This competes directly against raspi A+ and doesn't do anything better. In fact specs are much worse; Raspi has twice the CPU clock 4 times the RAM and can do the Linux-cloudie-javascript thing better, with plenty of ready to run on-line examples, so meh.
No, it doesn't compete directly with the RPi A+ for the reasons you state, and some you completely miss, like size, onboard WiFi, etc.
Chinese devs have been making these little single chip / dual chip SOC + WiFi devices for a while now, $15-$20.
I don't see why these Kickstarter projects get the traction they do.
it's just an ARM SOC with RAM. it runs Linux, just like every other ARM SOC. It can run open source tools like PHP, Node,js, etc.. just like every other ARM SOC.
Well, it isn't an ARM SOC, but that is neither here nor there.
As for the rest of your comment, do you really not understand that people are willing to trade money for time, and vice versa?
Once upon a time, I was on an email thread where some senior Microsoft person said: I don't understand what Blogger offers that couldn't be done with FrontPage. And they had a point, but by the standards of the question, Notepad.exe would have been another viable alternative.