Redbox does not appeal to me either, it is several miles to the nearest kiosk. But they have a huge disc rental customer base (≈ 39 million). In addition to the SVOD they plan to have EST and PPV (like Amazon, VUDU, etc.) and offer Ultra Violet titles. If they pull all of this off it will make them a very formidable one stop shop competitor.
The only thing missing is disc by mail and they probably have no interest in that sector because of their kiosk but I sure would like them to procure the Blockbuster by mail business. I believe they would do better with it than Dish has.