Yeah Dell/MS is in an awkward place with people being heavily entrenched in the Apple/Android ecosystems and having troubles clawing away market share.
It looks like they are trying to flood out devices with the dirt cheap prices. Really, for $230 that the 32 gig ones are going for that's a crazy amount of hardware and software you are getting. When you look at this device, the hardware it comes with, the build of it, and the software licensing you are paying for...it's hard not to get mad at the total fleecing we are taking on mobile phones. Is something like a $600 Galaxy S4 *really* worth nearly $400 more than this device?
To me this device is sort of like what the Nexus tablets were at the time they were introduced. They weren't going to dominate a market. They weren't going to make Apple quiver in their boots. They were an option that was reasonably priced, and just something "different".
As more of these get out, people start reading the reviews (which are mostly quite positive) and you see them out and about more they'll gain some traction. Maybe it's the bump developers needed to start getting more apps out in the Windows store.
Will be interested to know just how many of these Dell sells in the first month.