The project is being funded by
TechSource.
Remember that the project's leader, Timithy Miller, works for TechSource. TechSource has much experience in the market of producing hardware.
I agree that this project has a great deal to overcome to be successful. Even if they fail, however, I think it is a step in the right direction. In addition, they only need a small amount of cards sold to make this a worthwhile endeavor.
If the first generation of cards is moderatly successful, the path will be paved for a better second generating that may turn more heads. In addition, the first generation will not be for the desktop market: it will be for embeded devices. The sales from this will allow them to sale the desktop card a lower price.
Allow me to quote myself from a message on the Gentoo Boards:
You probobly notice that I am being somewhat idealistic here....
Remember that direct consumers are not the only ones who will be buying this card. In fact, we hope that much of the sales will come from bulk purches to GNU / Linux hardware vendors.