Not a bad idea
The link this goes back to has a comment saying this will put out the mom & pop laundromats. I disagree that a large corporation would put many of them out.
If they can have a clean, efficient laundry system, let them do it. Laundromats are extremely expensive to start up and requires a lot of capital and time not to mention needing people around to make sure the customers needs are met.
If you must use a laundromat, location, cost, and cleanliness are the most important things. If the Kwash is 2 miles away and there is one just a block away, you'll go to the closer one especially if you have to walk or taking public transportation.
If Kwash can raise the standards of what a good laundromat should be, then it's fine. I doubt that K-Mart or Kwash will be some force.