I hope you didn't score the appliance without even trying it out.
There are a couple other PXE appliances, but there weren't any when I started this. Although this uses PXE, it is specifically created to install any Linux that supports Kickstart, such as Fedora, Red Hat, and their derivatives.
Have you ever set up an environment for doing PXE-based Kickstart installs? Sure I can do it in under an hour (assuming I already have the ISOs) but if you haven't done it before it can take all day. You have to set up an FTP, NFS, or Web server, set up a TFTP server, and properly configure a DHCP server. You have to properly extract the ISOs and properly configure the TFTP server tree. In addition, most of the time I see PXE environments that only support one OS and one Kickstart file for all hosts (because doing anything more manually can be a pain). You also have to find or create your own Kickstart file.
This appliance has everything set up for you and is PRELOADED with Fedora Core 4. You should realize that Fedora Core 4 comes on 4 CDs, and it is almost included in the appliance in its entirety, accounting for most of the nearly 2GB size. You can download and load additional ISOs into the appliance through its web interface.
In addition, this appliance has the best web-based Kickstart generator I know about, better than the one you get when you buy Red Hat's Satellite Server.
Yes, the appliance could be shrunk down to < 200MB easy if it did not include any ISO images, but then the first thing you would have to do is download and import 2GB of ISO images, which is not fast. For the contest, I felt it best to not require so much work before it can even do anything.
Innovative use of virtualization technology... not none. You can instantly have a very nice Kickstart server set up in the amount of time it would take you to download just the ISO images yourself. Even more important, if you want a new web server, you create a new virual machine, and use the KickstartWeb interface to create a profile appropriate for a web server, and then hit F12 to PXE-install it. If you are in a large company and have 10, 20, or even more unique types of servers (web, mail, app server, firewall, etc), why take the time and space to create a VMware template for each one when you can simply provision the box from scratch in only a couple of minutes? Better yet, what if you have 10 different profiles based on Fedora Core 4, and want to upgrade to Fedora Core 5? With this appliance, you just import the new ISOs and change the distribution each profile is linked to. With a template or cloning method, you'd have to manually rebuild all of your template systems.
Sure, this is not very useful for an individual, but it is a server application for use by sysadmins who want to provision Linux quickly, whether virually or physically. I agree that a smaller version that does not contain Fedora Core 4 would be useful for enterprise users, however for them a 2GB download is not a show-stopper either.