IMO, it's doomed to failure. It was tried in the US awhile ago for ISP service, it didn't go anywhere. Now, it will indeed succeed when the right formula is created. Making enduser captive to watch mind numbing info commercials is not the way to do it, let alone making them load a fresh CD every week. One has to question just what market they are targetting if they are going after people who don't own a computer in this day in age.
The only way I can see it working is when the software is the driving sales force, they will throw in a system for free. This will of course not make the computer OEMs too happy as the years of "free" OS on their hardware will no longer do and force even futher thinning of profit margins for bulk orders.
Dammy