So they're still using the A10 SoC (1.5GHz Cortex A8 + Mali400-4core), but increased it from single-channel ddr2 512MB RAM to a dual-512MB ddr3 RAM.

That would definitely increase the overall performance, and give room for multitasking. I can see some "heavier" OS's like Ubuntu potentially working decently on it.

The only problems I can see is the limited nand capacity, poor wifi chip and unused space inside (put in a larger battery?). Well if it ships most of the pre-orders within 3 months at this rate....I can certainly see it as successful.
Especially if they decide on a version2 with something even more spacious/comfortable like 2GB RAM, 64GB NAND, and something like an OMAP4430.