Hmm...
Well, it's always nice to see more distros out there, though I can't help but think SteamOS can do much of what this does a little bit better. They really haven't done anything that makes the LXDE desktop easier to navigate with the gamepad, which means that you're still going to need a KB&M. The pre-configured emulation applications are nice, as is Wine preloaded, but these are applications that can be run on SteamOS, and without the grey zone of maybe owning the rights to use a ROM.
The older ubuntu base is going to hobble it in terms of performance, though they may get better in the future. I can't help but think that someone who can reliably boot off of a USB stick could probably pretty reliably install applications off the Ubuntu store (or even just .debs). If they are looking for stripped down performance for gaming, there are better bases to start with (Arch and Manjaro come to mind) but in so far as what it does, it seems convenient if you just want a cheap live USB and controler.
Though, at that point, i might better compare it to one of the many android stick consoles that cropped up around the same time as Ouya. Those are going to have better controller navigation and are going to be just as useful for emulated games without taking up a laptop or other computer.
I'm not sure what they are doing here that is really going to be adding back to the community in terms of solutions to problems, but I'm sure they will find some interesting bugs in these applications and their interactions with ubuntu or LXDE. All in all, it is an interesting concept, but I feel like there are better options depending on what you are looking for.
If I were giving them some ideas or suggestions, I would say that making a controler navigable main UI via LXDE would really set this distro apart and give this a clear contribution to an upstream project at the same time. Competition for SteamOS is never a bad thing, and the 10 foot interface is a little underrepresented in easy to drop in Linux distros.