1) in practical terms, what you get is essentially an open, hackable platform. The CTO is a former KDE dev, you get root on the device, much of the product is being developed in the open-
And there are recipes for getting UI and background components running on the device. I have not done this, but do use the API in my own workflow to get content on the device.
2) Yes, they are building a product. A, say, religious commitment to open source, and/or open hardware, is a commitment to limit the range of decisions that may help the business to a much narrower set that adhere to the religion. Sometimes strict open source is good for business. Often it is not.
As someone who in his younger years has bought quite a large number of "open hardware" products, the software for which was always only barely usable, the business model hypothetical, and therefore never went anywhere and now litter the graveyard- I am very happy for this team to be doing the right things for the business.
It's a really good product, with a really bright future, and it also happens to be pretty open and hackable.
Kind of best case, in my opinion.
Cheers.