It is serious competition to AH for those that favor eye candy over substance and have the computing power to get a decent frame rate. With a sizable planeset as well. Cheaper too at 9.95 per month.
But better graphics don't necessarily make it a better sim or a better game. I don't think all that much of WB3 despite the bragging about how superior their graphics are and now it is higher priced too.

I doubt the final version of FA3 is gonna improve much over the current free beta, and in its present form, I still find AH to be the better sim. If VR1 aggressively continues to improve their sim the way HTC does with AH, then HTC going to be facing some serious competition.