Initially I was a bit shocked by the price tag. But I think there are a couple things that need to be considered.
First, it is a very wide lens. Uncommon in this format without having a camera that uses interchangeable lenses.
Second, it is a limited edition of 500 cameras right now. It may become a regular product but you will still own one of the 1st 500 of these. Whether or not that is your "thing" is immaterial. Exclusivity is a BIG selling point in a lot of circles.
After that the other things come into play. It is a Lomo, it is a glass lens, it is a compact 6x6 camera, it is an auto exposure camera, it is basically auto focus.
I personally don't want one of these. My plain vanilla, $15 Lomo is adequate for my needs in this category. I am not real big on lenses this wide, and if I want to shoot with one I have a very nice Pentax 35mm for my 645Nii.
However, it will be interesting to see how fast these sell out.