I don't own a Kel-Tec but I certainly recall many KT reliability issues discussed on various forums where a standard response was that a "fluff and buff" was needed to assure some degree of reliability. I think this perception, to some extent, of less than stellar out-of-the-box reliability has attached itself to the company, whether truely justified or not. Ruger, on the other hand, has a reputation, whether justified or not, of producing overbuilt, reliable firearms. Ruger has the advantage of riding this perception with its new offering whereas Kel-Tec must overcome its image to compete in this head-to-head competition. I think, with this advantage, Ruger may well prevail in this new (for them) marketing area.
To be fair, Bill Ruger alienated a fairly large segment of firearms owners with his support of limits on magazine capacity and the company policy of not offering large-capacity magazines (to the public) for the Mini-14 and Mini-30. This new pistol, of course, will have no appeal to this group.
If this venture is successful and Ruger gains significant market-share in this area, I believe we will see further development in other calibers and, possibly, a challenge to NAA in the mini-revolver market.