A friend has a Pentax 17. The results I have seen with it are amazingly good.
Scale focusing works well for me:
f/5 (35mm equiv) or smaller can of course easily look great. And I didn't say it wasn't sharp. But f/5 it's very limited versus an f/1.4 equivalent standard to the 35mm pro/serious market. (which would need to be f/1.0 to look the same on half frame), in that you simply can't get anything close to the same shallow DOF if you want to. Nor nearly as good low light performance (no IS either unlike possible on a film camera with an e.g. EOS mount).
Zone focus is not unusable, but it is very slow and crude compared to modern autofocus this could support easily, will lead to more misses, and most importantly, it's a bottleneck to making the lens brighter (see f/1.0 equivalent competitive lens mentioned above)
P17 is also not an SLR so has parallax and lacks DOF preview, other advantages this would have. Nor can it do macro... or tele shots... no interchangeable lenses... etc. etc.
I'm not shitting on the P17, it's a cool decent camera, but it's just WAY WAY less performative than this proposed camera would be. So the 3x higher price tag is realistic judging by the success of the P17, that's all I'm saying and the only reason for bringing it up.
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That said, Pentax would definitely make more money than either this or the P17 with a new remake of a classic 90s style autofocus pocketable new point and shoot with a bright nice lens, some minimal manual override exposure compensation ability, and warranty. The good ones on ebay are many $100s-$1,000s unlike SLRs, and it's what the kiddos want, so it would sell like hotcakes.
They should definitely dot hat first, before any wacky proposals like this.