As to how it's better than an LCA, I don't have any personal experience with the Lomo cameras so I don't want to comment too much, but for one thing the Pentax 17 is a brand new in-house design manufactured in (I believe) the same factory in Vietnam as some of Pentax's best lenses. The current LCA+ is a Chinese-made copy of an old Russian camera that was a knock-off of an even older Cosina camera. Not that they can't make great images, but LCAs are not exactly known as the most trouble-free or long-lasting cameras in the world. Again, I don't mean to badmouth the LCA but there is a reason Lomo has always touted the "Don't worry just shoot" principle.
The original Soviet LC-A, while not flawless, was a damn sight better built than any of Lomography's LC-A derivatives.
Really take that on board for a second: a Soviet camera, made during the total collapse of the Soviet Union and a period known for low quality manufacturing (see: an entire batch of Kievs supposedly going straight from factory to landfill in this era) is
still better and more reliable than something being produced by a marketing monolith today.
It's been a long time since I've followed their product releases, but at least in the early 2010s, everything Lomography made had serious defect rates and design issues, and I don't believe things have really changed that much over there.
So, again: £400 for a 120 LC-A from a company that cares more about flashy packaging than producing a reliable product, or £500 for the Pentax 17 from a company that has a long track record of making really great and well-received cameras (whether we're talking about the Pentax brand or the parent company Ricoh)?
Honestly, I hope it sells well, and I'm sure other companies are going to be watching it with some interest.
Also, I don't know if anyone clocked this, but Fuji have also released a new film camera this week - the new Instax Wide 400. It looks like a pretty big step back from earlier models as far as features go, but
two new film cameras in one week? Unheard of.