You shouldn't compare it to reCAPTCHA just because it's made by the same guy...
I also think the numbers he quoted about buying learning material are a little off. Purely because they are quoting numbers which cover a broad range of media. Whereas duolingo is the web and maybe mobile apps.
I personally think the market is huge, I just felt the numbers were sexed up for effect.
The "avg" of user sentences to create a better version sounds very exciting from a tech point of view.