The concept is pretty sound, and you can already see the problem they are trying to solve with it.
One thing missing from FaceTime is a really good "living room" / "family room" experience. That means, a wide angle camera that sees as much as possible, and one that can track movement so that as people move, they remain in frame. Combine with that a really good Mic system and speaker system (both of HomePod has). And, a large and clear display for the remote parties.
Such a device would be nice to have and would quickly replace all use of FaceTime on iPad in our home.