Looks interesting. Shell can be a good tool for this type of thing, as long as rigorous care is taken to maintain good quality. I view it kind of like PHP, Perl, or JavaScript... you can definitely write good code in these languages, but it requires more discipline than in other languages. Shell offers a number of benefits too, namely it's ubiquitous, most people that would be interested in this distro will know it already, and it makes it easy to drive around other tools and processes.

One concern I would have though is that it seems their package manager does not currently have any way to include patches to packages (or if it does, it's not mentioned in the documentation). This can make it hard to port things if they require even minor tweaks to build properly.