Not necessarily a Pi replacement
I suspect this isn't going to make big incursions into the "home DIY tinkerer" market, but it could do well in embedded systems (unless it's in the region of $50 or less, which seems doubtful).
Embedded systems aren't quite as price sensitive, but often have other requirements like security of supply, eMMC (instead of SD card) and wider temperature/power ranges or whatever. PoE would strike me as useful in those situations as well. The other thing embedded folk like is the ability to get things taken off the board - so maybe make it as pictured, but with no USBs and no HDMI or whatever. Embedded folk will likely flash the device once with a Buildroot image, for which they'll need some convenient method, but beyond that, all the convenience of a Raspberry Pi isn't needed. Once flashed the first time, their own application's updates will take it from there (if indeed they update it at all - a lot of stuff doesn't).
This thing may not have the community support of a Pi, and it may not be nearly as easy to home-tinker with it as a result, but it could well sweep up a good chunk of the more professional market. But then again, it's a crowded market (and the Pi does operate there too), so who knows?