this is not for prototyping --

This is for consumer usage. You see a design for a toy online you download it go to staples and boom you have a gift for your 5 year old. You have the specs for a rare car part you need. You print it at staples and take it to a machine shop to get it made.

Using paper as a build material is a good idea. It's cheap and readily available, unlike some of the powders used in other colour 3D printers. However, the 256 x 169 x 150mm build envelope is a little small for a comercial printer.
I couldn't find any information on the mcor website on the binder used to hold the paper layers together, though they are claiming to be eco-friendly.

...staples is the last place a prototyper would go
It would all depend on cost. And given their low cost build material (paper), they would likely be quite competitive on price.