Most seem to be missing the point; Google is playing the long game with this device. This is not intended to be a high-selling machine, it exists purely to encourage third-party development for their Chrome OS. Much like their fiber network in KC and project Glass, they are willing to basically throw money down the drain in the name of development.
One of the biggest complaints about Chrome (aside from requiring a data connection to do anything) is the lack of software. If Google can get some major entities to produce Chrome-based software that the public wants/needs, then when they release a more mass-market Chromebook with a super high resolution screen and touch capabilities at more of a price point that Google is known for, people won't say, "Well, it's a great device, but where's the software?"
Tl;dr: This looks like a device to entice developers to Chrome, not consumers.