I love 4E, and I'll be picking up the Red box at least but the one thing that kind of bewilders me is that while I understand (and totallyagree with) putting out the ERB (essentials red box)- the rest of the line is confusing for someone midly informed like me, let alone new players & DMs.
Red Box
Books of classic races and classes
book of new(er) races and classes
rules compendium
DMs "kit"
Monster "kit"
Tile kit
One of the big complaints for new players, is the 3 hardback book syndrome- its not only rules overload, it's a BIG initial expense (for the DM). This looks to be another big initial expense (considering the red box only details a couple levels).
The sense I get is that a group will pool resources and get one copy of the Red Box, or that one person will get it and use it to get his friends into the game, or things like that.
Then, once they are ready to go beyond that, the players pick up whichever player book fits their character, and the DM picks up the DM's Kit and Monster Vault. More stuff can be acquired as needed. Not sure how vital it will be to pick up the Rules Compendium - if the Red Box covers the basics, it might just be a bonus, serving as a super glossary / FAQ on how everything comes together.
I don't think it is particularly worse than the current approach, especially since I understand the player's books are paperback, so have a $20 buy-in rather than $30.
If nothing else, a group of kids being able to chip in $3-4 each and pick up the Red Box, and try the game out, is going to be a great way to get people in the door.