Yup, it's more a tech-demo than close to being useful. As you mentioned, with winUAE on a netbook you get far better (and more usable) results with everything easily available. Besides that, it's the same developer who brought the C64 emulator to the iPhone. And that isn't a very impressive app to say the least.
And how does he solve the kickstart problem? Will Cloanto receive a percentage of the profits made in future?