I'm all for anything that makes HTPC use easier... although I never did see the value in web surfing on a multimedia system, unless it's your only computer.
I nearly fell over when I saw the price...One would expect much more than $50.00.
I'm going to have to get one to play with and see if my customers want them...
However (and I do hope you'll forgive a shameless plug here)...
As Greg correctly points out the good old mouse and keyboard are still the best way to interract with any computer device. But how to deal with the "accumulation of junk on the coffee table" issue?
One solution is to use a netbook as a remote control, managing your htpc from the screen right in your hands, rather than having to look across the room. That is, a small server (abt 600k) installed on the HTPC to launch your favorite media player with a client (abt 500k) on the netbook to choose files and control the playback. Interrestingly this lets you do something the Glide TV package won't let you do... watch a movie while surfing the net!
The software to do this is located here -->
Remote Media and it's free.
(of course it does a lot more than just this...)