It is for such a narrow subset of users. I am surprised it got greenlit. I try to think of the scenarios where you would really want something like this and I come up with only two:

1. You only have one television in your house and it is shared among family members and buying a cheap $200 tv is not practical from a space perspective.

2. You really want to play playstation games in bed or on the couch watching tv.

That is it. People who do purchase this will probably end up regretting it.

I just bought a Backbone controller for my phone and that basically does the same thing for half the cost.