It's actually a fully functional PC built into the body of a Commodore 64 keyboard with a little extra bonus: The appeal is that you can launch a C64-mode to play all the old games and run the old software via an emulator available on the desktop. Though as the vendor's Web site informs you: "Commodore OS 1.0, along with emulation functionality and the classic game package, will be mailed to purchasers when available. In the meantime, units come with the Ubuntu 10.04 LTS operating system on CD ready to install."
Of course there are plenty of Commodore emulation programs out there. The original company that made the Commodore 64 went bankrupt years ago.