I saw it the other day as well and I don't think it is as bad as people are saying. I played Joust and Robotron and both played pretty well with Robotron taking advantage of dual sticks. True the sticks are not made that great but they're playable, and the buttons..those could use some help. I found them to be too stiff to smash the buttons in Joust.
The worst part about the cabinet to me was the monitor. It was a standard 14" tv. The one they had on display looked like the TV was dying out already, with it being very washed out looking.
I personally own a MAME machine so I would never buy a $450 cabinet like that to play something equivilant to one of those Jakks 10-in-1 games, but it would make a good gift item for those who aren't hardcore emulation fans like ourselves and it does look pretty cool as an addition to a game room or kids bedroom.
I think the unit is worth about $150-200. No more than that. If I had the cash (and apartment space) I would buy it just to mod it with a PC and LCD screen. I also like it just for the panel and side art...something my MAME machine is missing.