There aren't any merits to talk about. A flip phone is still a nostalgia play. If someone is nostalgic about flip phones, they're nostalgic about a Nokia, Commodore was long gone by the era of flip phones. And, you can still buy flip phones from a variety of manufacturers, including Nokia, for under $100. A dumb phone, including from reputable manufacturers, is extremely easy and cheap to come by, if that's what you want. A dumb phone is a commodity with many suppliers.
This product at this price is entirely about leveraging the Commodore brand, and it's leveraging the brand in an incoherent direction. If I thought they were making astronomical margins on a low upfront cost, I would think, "OK, fine, do your little experiment, though I don't like you degrading the brand for no good reason." But, I don't think they're going to make astronomical margins and I don't think the upfront cost is low. I think they're spending a lot of money on a product that will be a flop.
I don't think there are any particularly reputable brands of featurephones anymore. Nokia/HMD certainly isn't one: they have obnoxious bugs, they drop calls, and lack basic modern-day compatibility features like emoji in text messages (they display only an "unknown character" box) and group MMS.
However, it does not necessarily mean there is demand for a quality featurephone: it might be that the demand is so low that it does not make sense to manufacture one.
This product at this price is entirely about leveraging the Commodore brand, and it's leveraging the brand in an incoherent direction. If I thought they were making astronomical margins on a low upfront cost, I would think, "OK, fine, do your little experiment, though I don't like you degrading the brand for no good reason." But, I don't think they're going to make astronomical margins and I don't think the upfront cost is low. I think they're spending a lot of money on a product that will be a flop.