It would not surprise me to learn that it was, but was found wanting, either technically or in terms of market. These days, however, niche products can be made profitable (film for instance)
An initiative like this could perhaps be made a modest (in terms of volume) but nevertheless profitable success.
After all, the Lomography crew seem to be doing quite well out of selling crappy overpriced plastic cameras and heavily marked up film, so there's clearly a market for slightly kitschy stuff (I'm not being snitty about this, they're a success story and good for them too)
I wouldn't want one, as I'm happy with my digital and film cameras being separate, but there will be those who will.
The idea that you could have a genyouwine film camera (but be able to get real digital photos out of it) has real potential, it seems to me. I just think he should have used Kickstarter where he'd probably find a higher profile with one of the markets that really matters - the US; I bet it would go down a storm in Japan too ...