I think that as long as you could make the scope durable and the illumination was bright enough for daytime use, this scope would be successful at that price point.
Zak is right on the eye relief though. 3.5-4" is too much eye relief for most ARs. With that much eye relief the objective has to be mounted forward of the barrel nut to even be usable and NTCH is impossible. Not much point in making a $300 scope that can only be used in $150-200 mounts or in conjunction with a $300 rail system.
Even with just 2.4" of eye relief, the objective of the TA11 has to be mounted just over the barrel nut to use it NTCH. I've got 4 rail slots between the back of the mount and the front of the rear sight - that is plenty of room to move it back for those who don't care for NTCH.
The other issues with eye pupil, battery, etc. are all nice to haves; but would probably raise the price point and I think this scope could succeed without them as long as the retail price point is kept below $300. The eye-relief is a deal killer though I think.