They made a very cute super-small sub iPod Shuffle sized player in the past. This one looks nice too. Although they are very unclear on what its ability to work with online music stores is.... presumably it supports DRM'd WMA music. But they're not very clear about that at all.
But sure, yes, it's cute. And rather derivative. But seems to be nicely produced.
I think they're a small market player, though. They're not competition to anyone or anything. Unless they've changed dramatically. I don't think they're in a position to ship millions of units.