As someone who works with CNC machinery on a daily basis as a manufacturing/mechanical engineer, having a cheap low cost DIY desktop CNC would be incredibly useful for home usage. However, this will be limited in it's capabilities. Cutting metals like aluminum usually requires coolant or else the material will melt and jam up inside of the flutes of the tooling. Steels can be air cut with the right carbide tooling, but I don't think this machine will have the structural rigidity required to cut steel. Generally the rule of thumb in machine design is to make your machine as heavy and rigid as possible. There is a good reason why these machines aren't cheap.
Something like this will probably be useful for cutting plastics, wood, and maybe aluminum if your willing to mount a cooling and reclamation system. Also this system will be SLOW most undoubtedly. However it will have it's uses. Cutting HDPE to make molds for silicon casting would be one, great for modelers. Precisely making printed circuit boards would also be another useful feature. Drilling wouldn't be too bad as long as the machine has enough torque. I think something like this would work well with one of the homemade 3D printers such as the MakerBot or Reprap.
I'm very curious on my end, might end up building one if I can get my boss to let me utitlize company machinery to make one.