Scale is relative only to how Blue Octy envisions the future of their company. There is no reason that the Android app is the only other method of delivering Chumby's widgets. There can be a Windows 8, an iOS app, or a WordPress, Drupal, or even Joomla plugin. Even the Android app itself could be re-imagined for larger screens. They would be supported by Blue Octy to always be optimizing chumby widget performance/delivery/capability. There could be paid vs ad-supported free versions. Heck I could see Blue Octy partnering with One Laptop Per Child by way of getting them to include a Linux powered Chumby app pre-installed in their laptops with a shortcut to the chumby.com marketplace pre-set in the browser.
Assuming Blue Octy still retains the permission to deliver and host the widgets that were developed this would all be consistent. If they don't then what the hell are we talking about, the platform already died because the developers would rather not let their work be experienced by anyone anymore.
If we're also assuming Blue Octy has no plans on growing the community of chumby users either by re-engaging the manufactures of the actual devices or by developing more Chumby apps like the Android, then again, what the hell are we talking for, this entire project has already failed and Blue Octy wasted their money.
I'm hoping there's some way to salvage the community of developers that already exists, as small as it may be, and growing that community by opening up the platform itself to allow folks to self-host. Joomla would never have become the behemoth it is (last I checked the #2 most used CMS in the world) if it forced everyone to use Joomla.com to host their websites.
I'm hoping too that Blue Octy plans on also growing the relationships with existing app vendors. Why couldn't there be an official Namco Tamogotchi widget for Chumby? Tamogotchi L.I.F.E. was just released on Android a couple months ago and it could probably be ported to a purely FLV version capable of running on a Chumby.
Why can't the Chumby widget platform become a marketplace like the JED? Hell with 40,000 users we probably already beat those using the Blackberry World storefront, lol.
Why can't non-smartphones capable of just running simple Java apps come with a new java Chumby app preinstalled from the dealings Blue Octy has made with device manufacturers. Blue Octy could be positioning themselves to make non-smartphones not so dumb. These widgets could be the keys to making those cheap devices much more powerful. Think of the userbase then. Don't forget too, this is a global economy. VERY few people in China can afford actual iPhones and instead settle for crappy Android knock-offs if they can even afford them. WAY more people settle for non-smart phones.
Heck I could see Blue Octy making themselves ripe to be bought out by Oracle in under 3 years, just so Oracle retains the ability to push more powerful and more relevant java-powered devices out into the marketplace. Everyone in high tech is chomping at the bit to make appliances everywhere in the home smart. Washers, refrigerators, hot water tanks, circuit breaker boxes, all of them are ripe for an overhaul using touchscreens displaying information from their attached sensors and doing something smart with them. Yes the premium ones will be powered by Android or developed with a proprietary system like the touch screens in cars. But there will ALWAYS be a marketplace for a player to bring basic smart-ish functionality to such devices at a lower cost. I'd love a panel on my washing machine that is powered by Chumby. I could see the recently revamped Furby to sport Chumby accessories. I've seen robots powered by Chumby on YouTube.
I think the potential of this device is only limited by the imaginations of Blue Octy. Sure there are gotchas. Chumby probably had some of these very same ideas I listed above, but ran out of money. Hopefully Blue Octy fairs better.
Hopefully Blue Octy isn't just waiting to see if someone with deeper pockets wants to take this all over with the plans on just shutting down if that doesn't happen within a year.
Even if all of this does fail, I see absolutely no reason not to release a pre-packaged web server capable of hosting newly developed chumby apps (or ones existing developers freely allow folks to use on their own servers) and a corresponding firmware for the chumby that can use such a user created server.