The Nikon V1 has a sensor that is smaller than even the Micro Four Thirds cameras currently, and that alone may be the biggest threat to it becoming a serious contender in any higher end application. Yes the sensor is larger than point-and-shoot style cameras, but it is not nearly the surface area of even APS-C or DX sensors.
On the other hand, the camera does excel in some other areas such as its hybrid autofocus system. It allows 10fps with autofocus, or 60fps with focus locked, both utilizing the electronic shutter. With the mechanical shutter you can achieve a very respectable 5fps. One very interesting feature is that with the electronic shutter, you can dial in up to 1/16000 shutter speeds, quite impressive.
The hybrid AF system is quite revolutionary as compared to other mirrorless cameras. The camera not only provides contrast detection AF, but also phase detection, utilizing 73 point phase detection AF in continuous AF mode. This could be a huge benefit when tracking moving subjects such as in sports.
The speed of the AF system comes thanks to the fact that, unlike competing mirrorless cameras which rely solely on contrast detection to determine focus, the Nikon V1 has a hybrid system that combines both phase-detection and contrast-detection capability. The operating mode is chosen automatically as appropriate to the shooting conditions, and a generous array of 73 phase detection AF points are available.
The camera uses the Nikon 1 lens mount, but it is compatible with Nikon F-mount lenses via the FT1 adapter.
Two Nikon 1 mount specific lenses would be applicable to sports photography, and that is the Nikkor VR 30-110mm f3.8-5.6 and the 10-100mm f4.5-5.6 PD-ZOOM. The first offers a range up to 297mm eqiv, and the second 270mm eqiv. The downside may be that they only offer f/5.6 at that range, but it would be usable depending on the lighting.
Due to the sensor size, achieving an out of focus portion of the frame will be difficult. That, paired with the fact that the widest aperture available in these zoom lenses is f/3.8, may mean a very wide depth of field.
Overall, I feel as though this camera will be excellent for enthusiasts to use for sports photography. Due to the limiting nature of small the small sensor, and the range of lenses currently available, I do not see this becoming a replacement for APS-C based bodies in the near future.