Before I consider it a worthwhile card, I'd have to know what sort of power it has on it. I know, it's not made for gaming... But will it be able to cut it for decoding H.264 and handling HDCP? THAT, I think, will be the main question that many of their prospective customers will be thinking. Obviously, gamers aren't their market; AMD's pretty much got that market locked up tight, with even Nvidia barely competing.
However, if they can make a card that is inexpensive, handles tons of displays, AND can handle full high-def decoding, they'll have themselves a market. Even better if it makes do with passive cooling. If it did all that, anything under, say, $150US would make it drool-inducing.
'course, I'll grant that S3 will likely fail to deliver on those daydreams; making good non-gamer cards seems to be almost exclusively Matrox's forté, with S3 mostly producing half-arsed stuff. But I guess we'll see.