I recently built a virtual mame/pin combo for my kids. I used a really low end AMD APU which was around $180 with motherboard and ram. the onboard GPU can easily run any of the williams titles at 1920x1200 at 60FPS with very little input lag. I'm using a zero delay usb encoder and sanwa buttons with a Freescale developer board with accelerometer for nudging.

If this is priced around $700 they should easily be able to get enough horsepower to run pinball fx3 bally/willliams titles smoothly and with near imperceptible input lag.

However, I'm guessing they are going to use an embedded android board like an ODROID to keep the cost low and for simplicity.

What is most important is going to be the type of display that they use. If they use an IPS panel with a matte finish, it's not going to look that great with diminished contrast and colors. I ended up removing the anti-reflecting layer of the monitor before installing it in my machine. Makes a huge difference.
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It most certainly will be. Arcade1ups business mode is sell “packs” of similar titles in different cabinets on a regular release schedule. This machine most definitely wont be able to load additional titles without modding.

Retro Ralph did a livestream about the leaks last night. What was not a typical pinball crowd seemed very excited about these virtual pins in the chat. I'm guessing these are going to sell quite well. As to whether these will be considered a "gateway" drug to real pins is probably unlikely.

Think of it this way. You could save $250 by buying one of these instead of a topper for your Stern Star Wars.