They would completely be in the target market for this. If they were buying a bike, this is a system they would want. In fact, it's a system I would want them to have, because I'm sick of watching them struggle with a single gear and they really do not feel comfortable with multiple gears!
I've tried to explain the benefits of multiple gears and how it's actually simple, but they won't have it. They aren't that comfortable with riding a bike anyway, and they don't want something extra to think about on top of all the other things. I also don't think they are completely atypical.
I can also see this being a great rental option, and great for kids who want a step-up bike as they learn.
Your argument seems to be "advanced users don't want this" - but that's not the target market. Automatic gears on cars don't go into racing cars, and manual gearboxes can be easier to maintain and provide more control. Automatic gears on cars are actually really there to reduce complexity for the average driver, which is what this is for bikes.