I think dead on arrival is too extreme but the niche is certainly hard to see. The "just works" crowd will buy consoles and the "max performance" crowd won't be happy with this value. The niche is something like "willing to tolerate some headaches but not so much as to build my own PC". That exists but seems small.

Feels like they should have gone cheap. Undercut the switch and be the cheapest way to play games on your TV. We're pretty far past performance equalling more entertainment. A 150-200 box to play indie side scrollers is a niche that exists.