I must say that I'm not surprised. This actually reminds me of a product I saw around 10 years ago, called the "Buddy PC," that happened to proclaim itself as the "World's first $100 PC." Of course, it wasn't a PC in anything but name, but rather just a hookup box for cables packaged with some software to turn a host PC into a server, so it could function as a non-processing dumb terminal. And due to the fact of signal loss, you couldn't install it farther than around 15-20 feet away from the host PC.
I have the distinct impression that that is exactly what this is, though I don't quite see how they managed to call it a laptop; it looks like on the client-side end it will still require all the standard desktop input and output devices, including a distinctly less-than-portable display. The only potential improvement I see is the addition of Wi-fi, which should increase the potential range it might be used within.
Yet even while considering the addition of Wi-Fi, and the parts that couldn't be reduced in production cost due to minaturization, it's still a little saddening that they managed to only cut the price of such an item down to $30US or so. I'd say that unless we see some benchmarking that shows that the latency imbued by the use of Wi-Fi doesn't cripple it even for Internet- and productivity-based applications, that something like this might be utterly not newsworthy. Potentially, I see it, at best, as perhaps a cheaper way to set up Indian call centers, where the likely-abominable speed won't hurt it. I don't really see it having much of a market elsewhere.