I think the main thing wrong is that it's horrifically overpriced.
It is nicely space-saving though, compared to almost any weight set-up. And it isn't as noisy to work-on -- you can get a full work-out without shaking the house and waking the neighbors (important if you live in an apartment).
It's also good for things like cable flies and tricep push-downs. All in all, its versatility is what's great about it. It won't replace a gym full of weights and all sorts of machines, but for what it's supposed to do, it does it.
The only problem with some of these types of machines is that the "weight" can be too light. And upgrades are either incredibly expensive or simply not manufactured. For large muscle movements like squats, rows, benches, or even lat pull-downs, you can very quickly outgrow the supplied resistance.