I've hosted a Minecraft server, reading this I immediately thought that a Pi was just not powerful enough to do an adequate job at running one. Perhaps they figured that out once it was too late?
I had the same thought. Using one for yourself and probably a friend or two in the LAN could work, but I doubt it can run a proper server with a reasonable amount of slots. Maybe the first real test opened his eyes, but he still underestimated the problem.
A non-scam product would probably be targeted exactly at that scenario: plug it in, run a server for a handful of friends. Likely anything more than 10 players would never depend on a product like this.