Ah, but see you're seeing it from your core gamer POV.
To some parent who merely wants a console for their kids and something to watch Netflix on in the living room, that is a very valid point.
Ah, but you're misjudging the market, as is the case with all these "tweener" consoles.
How big is the market you describe above, really? I'll say very small. Even if little Timmy is 12, he's likely sophisticated enough to want/demand a PS4/XOne like his friends, or at least a 360/PS3.
That's the problem with these half assed attempts to attract the core. You just cant half ass that market. Basically they are going to go to the highest end devices every time. Currently the X1 and PS4, and of course some PC.
No core gamer is going to see that "sev zero" game as anything but a curiosity, most likely.
Anyways, I think Amazon TV looks good next to $99 roku devices and Apple TV, due to the gaming aspect. But I paid I think 60 for my lower end Roku, and Chromecast is 35. That's where they may have trouble.
I wish it had more power/more advanced chipset, and was $99 with controller. Then I would possibly bite. But, controllers are expensive, so it's probably just not possible.
My ideal Android console: 2GB RAM is fine. Latest chipset such as Snapdragon 800 at least, and preferably even more cutting edge as these things move fast. Emphasis on easy sideloading/open access (for emulation of older consoles, which I guess they cannot officially advertise, but at least can make easy). emphasis on easy hack ability and being a great streamer from PC/other devices. Of course all the pay services. And $99 with controller.
A tall order, especially the last part
.