I don't really see how a cheap, low-end, mobile computer is going to kill off desktop gaming. Why would that happen? People will all of a sudden stop wanting top end equipment and big high-res screens because they can play some Steam Gameboy?
I'd be inclined to buy one of these for gaming and an ultra light laptop for laptop stuff when the time comes, versus getting a gaming laptop or desktop.
Competitive FPS playing is kinda like NASCAR. The hardware and configuration of hardware is critical if you actually want to win.
Good enough for 85% of gamers, hilarious-looking and infuriating to any serious hardcore gamers.