I think there could be a place for something like this today. We've all met people who are interested in O gauge trains, but once they get beyond putting up a train set, the track planning, the wiring, the construction is well beyond their interests and skills.
When I started in HO, I had one of these, the 4 x 6 version (which fit under the bed in our one-bedroom apartment.
I even modified it a bit to include about four siding for additional cars, providing switching and operational variety.
As many have mentioned, however, price would be an issue. If someone purchased a O gauge starter set for $150 - $200, how much would they be willing to pay for an easy-to-assemble and operate 4x8 layout with some basic scenery?