I'm not in the market for a system like this, but if I was, I'd be very excited right now. Seems like that is a pretty nice feature and component set for that price. True, the power rating is questionable, but they usually are on integrated systems like these, and if used in the small room setting for which it is intended, I'm sure it will do the job.
These types of systems are a great way for brands to get their hooks in young consumers or those sticking their toe into the surround sound waters for the first time.