If they can use this product to lock more people into their ecosystem it'll work. As a lifelong windows/android user, I've been eyeing up the neo.
Also, the Neo is just cheap enough that it's a product I'd consider buying that I don't need. I'm not in the market for a new laptop and certainly not an Air. So I'm a demographic considering this product that is not going to cannibalize their existing sales. There's gotta be at least a dozen people like me!