If the rumors are true, saying they are going to attempt to break away from typical standardization and start their own standards, then I think it is a bad idea.
I've also heard that some of their programs won't be released under the GPL? (Always lots of rumors)
I haven't payed much attention to United Linux, but I've never found it to be overly interesting, nor do I believe that it will stimulate the growth and productivity of Linux. Especially if either of the aforementioned rumors hold any truth.
Also, as nice as Linux for the desktop is for some people, I question whether a Linux distribution catered soley to desktop users will survive out there. (Again, I can't remember if it catered to desktop users only, but I'm pretty sure that I read that somewhere ).
At any rate, it will be interesting to see how things unfold.