This is a great idea. I work at an electronics retailer and teenage girls go crazy for Instax. I bet this will be even bigger.
I think this is a classic case of HN demographic bias, as (this is just a guess) but I imagine there is a dearth of materialistic/hip teenagers using HN and as a result a lot of the comments here have failed to recognise the importance of such a large market segment in reviving an original format.
'Old-school' and retro devices are somewhat coveted by the youth of today, and therefore I don't think the arguments based on digital format and technical superiority hold much water when a bunch of kids are gonna go nuts over getting a change to use a Polaroid again.