Dreamcast was the only console I ever bought at a midnight launch, I picked it up after an evening shift at Homebase. I think I got Power Stone, Sega Rally 2 and Sonic Adventures with it.
The Dreamcast sold terribly in the end so I don't think there is any nostalgia to cash in on outside of the hardcore Sega fans..
A better idea would be to make one of those cheap, licensed, multigame handhelds, like the Blaze/ATGames Megadrive/Genesis ones.
I don't know how feasible the emulation is on an ARM chip these days but the Dreamcast is 1998 tech.
The console detailed in the OP would be quite expensive due to a limited build run. Start up costs for molds, tooling and production time are especially costly for non mass produced products. Even the team behind the doomed RETRO console realised this.