When you make a good mobile OS that is free for everyone to use, and has a great eco-system behind it, this is what you get: an iPad alternative that costs only $50, which is 10x less than the cheapest version of iPad.
Now, I'm not saying that this is a high end tablet, but for the price tag it's carrying I'm sure it will make a lot of people happy that they can afford one, especially in countries like India, where an iPad or a similarly priced Android tablet would cost them a few months salary, if not even a whole year's salary for some.
From the video below, you can see that the 7" "Stamp" tablet from Allgo actually runs Android 1.6 pretty well, and it even has the higher 800×480 resolution. I'd say that is quite impressive and it's not exactly a world of difference between a higher end tablet and this one. Of course, it's not going to have the most vibrant display or a Tegra 2 SoC, but for browsing and other regular apps, it should be perfectly fine for people who can't afford a more expensive tablet, or just want to try this whole tablet computing thing.
Check out the video here: