It is a simulacrum. Adding a real, custom tiny keyboard (which 99% of buyers won't use anyway) would probably double the price.

Understandable, but disappointing. There already are emulators for the software. For the real experience, I'd like to type using that clunky C64 keyboard :P

I have one of these: http://www.vesalia.de/e_keyrahv2.htm

It converts the keyboard of a C64 into a USB keyboard. It is of course an unholy abomination so I usually don't talk about it.

Exactly. A non-working simulation is something that goes strongly against the geek mentality.

Nintendo has sold a great many NES and SNES Classics with non-working cartridge drives, and I'm sure a lot of the people buying those were geeks, so it must not go too strongly against it.

The box is 50% the size of a real C64. Even if a half-sized keyboard worked, I know my fingers would have extreme difficulty typing on it.

As someone else mentioned in another comment, and as seen in their about page, a full-sized version will come out in 2018.

Would be sweet if it was compatible with the original cassette/floppy drives!

Still a simulacrum?