Realistically you could get a lot done for $200
True, if you know what you are doing you could piecemeal a system like that for no more than 150$
However, most people are not willing to do this.
I mostly thought that it would be nice that people are being introduced to opensource programs and linux distros (even if it is google's OS).
If it ever takes off the linux forums will be flooded with NOOB questions (not likely). But the appeal is that more people will be using linux, and it is a start and weakening the stranglehold microsoft now maintains on operating system GUIs (windows) and data applications (microsoft office).
Basically Walmart caters to the unwashed masses.
These people now have acces to a linux based machine.
Due to lower funds they will be morelikely to purchase this than a more expensive one.
No the masses are uning linux, they find they like linux.
The demand increases.
The support and documentation for linux/distros increses.
The more affluent people hear of linux.
Some will be cheap and choose it.
Linux gains popularity.
Over time varioius linux disros will be used in widespread applications.
Now, I'm not dissing walmant, I shop there a lot.
I also love using linux it is superior to windows in many ways.
The appeal of this is that it will increase the general population's familiarity with Linux, and make people less reluctlant to try it or use it.
The general population is not going to search distrowatch and select a nice distro, they just want a computer that does what it is supposed to with them not having to tweak anything. This will allow them that, whothout the "confusion" of setting up a linux distro.