This thing is definitely a competitor to the c-one. It's an 8/16-bit system (it's even got a socket for a 65816 just like the c-one's) with FPGAs for a programmable chipset. There is a USB module in the works, so you should be able to plug in a keyboard and mouse if you want to.
The main difference is that this console is a lot cheaper, in terms of price and features; there is no IDE for example. In terms of value for money, they might be equivalent though. Since neither is for sale yet, it's hard to compare the two (hey, where have I heard THAT one before? :-P )
