This benefits the rest of the hobby as this helps keep the network of D&D players healthy. Which is where most other RPGs get their players from. Also by popularizing Virtual Table Tops this will draw attention to this type of software. Making it slightly easier for us who play other RPGs, like Swords & Wizardry, and use VTTs to find players. It will also spur innovation as other VTTs strive to exceed what Wizards offers.
After a long period, we have some news, a FAQ, and a Screen Shot. Of course nobody has a lot of respect for Wizard's programming team so we wait to see if they can actually pull this off right.
To me it looks like they are going 2D and integrating their token and tile art into the product. The earlier incarnation was going to be 3D which was going to be too big of leap. I think going the 2D route will leverage the advantage in art that Wizards has and provide an achievable goal.
The things Wizards will need to get right to be competitive in the long run will be
- Integration with Character Builder and Compendium.
- Use of Dungeon Tiles and other art assets,
- good game lobby to find other players.
- A regular release of precanned modules similar to encounters or delves so that even the most time pressed DM can get involved.