It appears that (VMView) this is a client to connect to a virtualized machine (desktop) much in the same manner as the Citrix ICA client, but specifically for Linux.
The VMware Virtual Desktop Initiative (VDI) seems to have been renamed VMware View: Formerly, you had to use a paid for client (Citrix licensed?) to reach a hosted workstation. Your options were (correct in response please) use RDP clients (bad for sound), a Citrix-involved client (cost, but you can get video), or the VMware Infrastructure Console (VIC) which is a bit kludgy on the admin overhead.
The specifics for this is that you can have a non-admin user connect to hosted machines (linux or windows) from a linux box (thin client) at no additional cost. The play seems to be for thin client boxes to include the VMware View connector at no cost, eg: saturating the market.
The reason for this is likely to gain parity with Citrix's ubiquity on Thin Client Boxes. Up to now, thin clients tend to have some version of the Citrix ICA client, a version of the Microsoft RDP client, and perhaps a X client, and a 3270/5250 terminal emulator. With many thin client manufacturers going to Linux based thin clients, this is an easy way to get the VMware client on Thin Clients cheap.
You will still pay for the core product, but (hopefully) no longer will have to pay extra for the Thin Client necessary to run the VMware View (aka VDI) "system." For slashdot users, who buy Thin clients for $9 (used) this will have no effect. You will still have to kludge users into the remote users group on each workstation, and configure each thin client to connect to the correct virtualized machine.
This has no effect on Xen (Citrix Virtualization), or Hyper-V (Microsoft Virtualization), or ESX clusters, Workstation, or Server (VMWare Virtualization). All of those will still be host bound, except for ESX - which will allow virtual systems to be moved around to maximize physical host resources.