I see the Lifetime ISA as being a product to appeal to those who want a pension, but don't want a pension. What I mean by this is those who want to save for retirement, but do not want their money invested in the stock market, bonds, property or whatever.
The 25% bonus is equivalent to the tax relief for a basic rate taxpayer paying into a pension. Higher rate and additional rate taxpayers won't receive the extra tax relief they would for a pension.
I find the first time house part of the Lifetime ISA slightly odd. I'd rather the Lifetime ISA be kept for retirement and the Help to Buy ISA kept for house buying, but with the rules changes on the HTB ISA to harmonise it with the Lifetime ISA. There's quite a few key differences at the moment:
Lifetime ISA: £450,000 maximum property purchase, £4,000 maxmum deposit per year
HTB ISA: £250,000 maximum outside London, £450,000 inside London, £2,400 maximum deposit per year (£200 per month)
In April, it will be possible to transfer a HTB ISA to a Lifetime ISA, but the rules around when a bonus can be earned are complex and timings will have to be carefully considered, otherwise access to the HTB ISA bonus could be lost for a year.
With nearly all properties round here being over £250,000, even one bed properties, the HTB ISA is essentially useless for me. I'm waiting until April 2018 (assuming I've not bought by then), to transfer my HTB ISA into a Lifetime ISA which I would have opened in April 2017 (confusing, eh?)