you *could* do a vm, but you would want to run this os on the machine anyway, they did a side by side with qemu (android sdk) and it's nowhere near the same level of performance. Bluestacks is better performance but suffers in compatibility, but still doesn't touch the compatibility or performance of this. This looks literally light years above the other solutions to the same problem. x86 android is the best performer because it's native boot, but it's not arm binary capable... so this is the "whole package"
they are focusing on touchscreen windows tabs as their main targets. Desktop with no touchscreen... yea, not really the best. x86 tabs are where it's going to shine, I have an asus transformerbook t100 that is first on their list of supported hardware, and I can see it making my windows tab into a full windows laptop, that can easily convert to an android tab on the fly. And not shitty like windows RT, or incompatible like x86 android dual boot laptops already on the market. This is functionally fixing an already existing market, even if small. But not as small as just the dev market.
They show android games that only perform halfway decent on top of the line ARM devices, and they ran them BETTER than they ran on the best android devices. Now will you get the same kind of performance out of the baytrails that are in the same league of top of the line ARM a15's??? probably not... but for that, they are targetting haswell i5/i7 chips as well that also have the "2 in 1" form factor with touch screen. And for those it's going to smoke the hell out of any ARM chip.
While the android game market doesn't have as good of a catalog as the PC, it's only expanding what games are capable of being ran on the PC. Exclusive android apps won't be isolated to just your tablet. But I think the main focus on which apps are ran are the touch screen centric apps. Windows and linux desktop envrionments suck for touchscreen. But there is a use case for owning a tablet, and there's one for owning a laptop. This combines the two in what I think is an acceptable trade off solution. And hell... it's $10. When you want to use your convertible tablet as a tablet... and have the option to use it as a real laptop when you want.