The low end tablets will meet the same fate as the low end android ones. Applications developed using the high end devices in mind will run painfully slow or perform miserably on the lower end ones. The higher end tablets might come with extra graphics support and such which would leave developers flummoxed on which devices to target.

Of course gaining traction as a closed source Chinese OS would be very difficult and unless we can see some code ourselves and run it locally, its all just speculation.