I look like ass, myself. But the fact it's got backers already shows some people just wanna play Galaga, by any means necessary, to Hell with all the extra stuff we do here.
I would expect people with arcade cabinets to think this looks like ass, but there are a lot of rooms that that don't look quite right with a giant piece of 7 Eleven in the corner. My wife and I used to live in a 1 bedroom apartment with panton chairs, acrylic cabinets, modern artwork and that kind of thing. While this wall mounted game station isn't exactly what I would want, it would have fit in with that living room way better than the neo geo cabinet my wife let me add. It created a clockwork orange meets shakeys pizza vibe that lots of people wouldn't be willing to deal with. Having said that, a 4:3 screen would definitely need for me to ever consider anything like this.
Regarding the license, a 14 game capcom cd was included with the HanaHo Hotrod and it included SFII. I think the disk used mame, but I can't find it to check. I believe the Arcade PC had far more licensed games and there are other examples like. So this wouldn't be the first project to get capcom on board.