Well, I'll bet you a nickel it runs on some kind of minimal Linux environment and uses open source emulators in violation of the GPL and/or whatever other licenses they have. So there'll be that, I'm sure. But I see your point.
I'd also guess that it runs linux. But likely in a very closed, proprietary way.
Maybe this device can be jailbroken and used for other purposes ... but apart from the interesting controller, I'd rather pick a device that can run the OS of my choice without much hassle.
Here are a couple of clear screenshots from the video.
Features:
Paddle
D-pad
Trackball
Keypad
Face buttons
Shoulder buttons
Full-sized HDMI out?
Headphone jack
It's pretty cool that it has all the inputs required to play every Atari home console game and even many arcade games. Having a paddle for games like Tempest is awesome. The trackball, however, was never designed for thumb use. In games like Crystal Castles or Marble Madness, you have to go nuts on it with your hands to be any good. Maybe it lets you dial up the sensitivity.