The systems logic that they have in this project makes sense: A more efficient structure would definitely make running a large urban region much more effective. And Saudi Arabia has a lot of flat, uninterrupted, unused space that is largely outside the earthquake, storm and other disaster zones, so a big linear structure can be easily workable there.
The line structure seems to be well calculated - its long, but its very thin. Meaning that they plan to run everything one single, uninterrupted, well, line of infra. Which totally makes sense from an engineering standpoint. If it was a vanity project or wasteful indulgence as some claim, the systems side of this would not be made as simple as this and it would be something more grand. Moreover, the linear building concept that apparently does not seem to inspire anyone judging from the comments, is another evidence that it was chosen for its systems efficiency, and not awe factor or tourism value.
Again, its an interesting project. Even if they can pull off a fraction of it and succeed in developing a large, uninterrupted urbanization that is efficient, it can make a great breakthrough in terms of urban technology.