I don't know what it is but it's got me hot and wet just reading about it.
Given that Fuji has a history of integral lens cameras (and they do make damn fine glass), if this goes over successfully, I would expect to see bodies with (hopefully) 35mm equivalents of 20mm, 24mm, 28mm, 50mm and 85/90mm in the future. I gotta love it 'cause I always shot with two M6 bodies--a 35 Summicron on one and a 50 Summicron on the other.
But I don't think Fuji can make this a success by pricing it too high. The competition right now will be from the micro 4/3 makers like Olympus and Panasonic with interchangeable lenses, EVF and introductory prices in the $1000-1200 range. And those prices always drop considerably after a year or so. If Fuji introduces it at a price in line with the competition, I'll bet they can sell a butt load of them.
Either way, I'm still hot and wet for it.