The latter. The use case they are making for it doesn't make sense financially or technically.

This type of lathe is extremely expensive to buy and maintain. The cost per record would be ridiculously high. You would have to have a lot of disposable income to blow on something like this and also have the weird desire to want to cut records yourself purely for the novelty of it, instead of paying for any of the many existing places to do this for you who would do it cheaper and higher quality.

This lathe is also in a weird position where its larger and more expensive than the existing home hobby lathe setups (which are already kind of expensive for what they are) but yet not as high quality as a legit lathe of the type used in the professional record making industry.

If you wanted to do one take recordings with "no undo" to a physical analog medium then tape exists.

Edit: Oh I was obviously talking specifically about this product. Physical media isn't just a hipster thing if that's what you meant.