Think it will be targeting a niche audience, but i think it will be a plausible model. If someone wanted an Abarth, but thinks the 500 and Punto are a little small and impractical, then this should fit the bill for them.
Having said that it will go against most things i believe Abarth should stand for, but Rome wasn't built in a day and if Abarth truly want to become a stand alone brand, then these are the risky steps and model expansions they have to consider.
Good luck to them