Jokes aside, this appears to be a full virtual machine rather than something like WSL that can interact with and manipulate the host OS. You probably won't be able to do anything interesting with your Android files using it, just mess around in a sandboxed distro. So it's still good for developers who want a portable Linux environment to run things in, but not nearly as useful as a properly integrated terminal would be.
Yeah if this isn't a step on the path to "connect your phone to this [usb-c|thunderbolt|whatevs] dock and you get a full desktop OS, I'm not super interested.
I wonder how this will effect the linux phone space (mobian, postmarketos, ubuntu touch). I hope it does not negatively impact progress by stealing attention away.