'Was this Atari even remotely anything to do with the old Atari? or was it just a brand purchased and slapped on substandard junk to sell it just like Commodore.'
Sadly there's little if anything left of the original Atari.
The company has been sliced and diced repeatedly by asset-strippers.
Up until 1984 it was a real pioneer with a huge research division doing things like high-speed networking, computer music and interactive learning environments. When Warner Bros sold it, they split Atari down the middle into a games division (Atari Games) and one for hardware (Atari Computer).
The games people did pretty well for a while and eventually ended up being taken up by NAMCO. Atari Computer was always underfunded and its ST computers couldn't keep up with the developing PC, and the consoles couldn't match Sega or Nintendo, so Atari Computer was eventually sold for a pittance to a joystick manufacturer. They in turn sold the brand and IP on to Hasbro for something like $5 million. Hasbro then got taken over by Infogrames Entertainment SA.
Inforgrames renamed their existing GT Interactive division as Infogrames Inc and then as Atari SA which they've used to publish both new games and old titles under the Atari name.
It's just a name, but it's sad to see Atari in this situation once again. I suspect the name will go to yet another owner who cares little or nothing for its history of innovation.