I was reading about this in a newspaper or magazine earlier in the year, and I was surprised to see that for all the crap they seem to be spurting, it's actually meant to be run by a guy whose done a number of successful ventures in Australia!
They seem to be aiming for the teenage crowd, and will have a number of inflight games & entertainment onboard as well as having a fully operational "bar area" (read: bar and seating area, like the Tiger Lounge on the 747 prototype).
I think if the fares are low enough they may be able to get a decent number of passengers on some of their flights, but it seems to be a flying Club 18-30 holiday - so no chance of the high yield business pax or families!
Fully thought out ... no me thinks!