The Raspberry Pi's main mission is education. I have no idea where they're at with that, but the commercial aspect of selling boards to the masses is a very slick way to raise funds. Would you give them money just because you like their cause? Not so readily. Intel isn't competing in this market and most likely won't do so any time soon.
If this board had an Nvidia card that did VDPAU, instead of that GMA cruft, I may have been interested - because I need VDPAU, and it works awesomely well with an Atom CPU and 1080p H.264 video on the ION platform. Not an ION? Not interested. (to Nvidia: wink, wink)
If people actually do switch to Intel's "competitor" board in the detriment of the Raspberry Pi, it's going to hurt Raspberry Pi Foundation's goals, the people who buy Intel's stuff will be a lot more out of pocket for not much in return (can you get the same or more power if you give the $200 to Raspberry Pi and build a cluster with their boards?) I somehow don't see that happening though...
Bottom line is that if you want a Raspberry Pi you get a Raspberry Pi, and if you want a crap x86 computer - just because it is small - you get the "competing" board from Intel.