The model will certainly appeal to people that have an interest in trains and models. Probably older customers that has owned or owns a regular metal H0 setup and has the money to invest in such items.
But since the cost of producing the generic LEGO pieces are way less than producing a metal model, the unit price per engine is very competitive. This opens up new markets with more price sensitive customers, like younger kids.
The model is built as a display item, but is quite sturdy and can be used in play.
The H0 scale also gives LEGO the possibility to offer sets in different price ranges, from single small engines to whole trains.
I will explore this further on as I will add more models to Cuusoo in the same spirit as the original H0 from the middle of the eighties. A bit rough and a lot of studs, but still going strong.