I don't think the intention is to "compete" at all. I mean, this is why only an institution like the BBC (love it or loathe it) is in a position to do this. It's not to make money or a platform. It's to educate.
Let's hope this initiative interests kids not exposed to this level of computing to then go on to buy Rpi's, learn how to use a command line, install an IDE, make a web site, or whatever else.
It's the gateway to computing aspect that's important here, not the longevity of the platform.
Rather than throw electronics at all kids and see which ones it sticks to they could make the Microbit freely available to that particular year group - all you need do is reach out your hand and take it. Then the 1 in 10, or whatever, that bother to try it can be bought a RPi with the savings. If you can't even be bothered to pick one up at your school library or send an email saying "yes please" and have it handed to you in class then the chances of you watching TV programs to learn how to use it are probably about nil.
Say this was sport, would you buy every kid a rugby ball? If you just buy enough so that everyone who wants one can get it then those that want to play rugby can have kit paid for too.
"Let's hope this initiative interests kids not exposed to this level of computing to then go on to buy Rpi's,"
Good point, didn't see this as a gateway to further computing.
I like the fractal nature of this. RPi was an Cambridge undergrad intro to computing. Now the Micro Bits a primary/secondary audience who might use it as a stepping stone to an RPi.
Let's hope this initiative interests kids not exposed to this level of computing to then go on to buy Rpi's, learn how to use a command line, install an IDE, make a web site, or whatever else.
It's the gateway to computing aspect that's important here, not the longevity of the platform.