I'd buy it and connect it to my desktop screen!
here is the thing, counter to what many PC elites believe, people don't upgrade their PC every time a new upgrade come out. People tend to live with their PC as it is until their next upgrade cycle comes around. nVidia said as much few years ago, they even went as far as saying that they might stop selling retail video cards because they don't sell so well.
Which is where the consoles come in, their hardware is static; a 6 years old console can play a new game without any problem, and the game would look on that console the same way it would look on any iteration of the console that came afterwards. On the other hand, with the PC, the graphics would look different depending on your specs. And to make it worse, the developers don't even bother to optimized their engines for the PC. As a result, even if your PC can do far more than the console, the game would look better on the console than it does on your PC! The developers would always say that they tried their best but the PC have too many configurations for them to optimized for all of them.
Hence this is where I believe such a consolePC would come in: People who don't upgrade their PCs often (the majority) can opt to buying this PC. The OEM would tell the developers that this consolePC will have a static specs for the next 2-3 years. The developers can now optimized their engine for this device as well as the console! While at the same time continue to make a general engine that would be used on all other PCs.
Although, the problem would be that this one vender would be controlling too much. It would have been better should they say, this is the slandered specs for the gaming PC for the next 2-3 years and let every other vender build their own PC, instead of using their position in the market to build their own PC. A second problem is the living room bit..... they are talking about controllers here aren't they?