I stumbled across this proposed retro video game system through a series of coincidences. A few guys who are into retro video games got together, and decided it would be neat to create a new retro system. That is to say, a system that incorporates relatively modern technology with designs and models that were prevalent during the 80's and 90's. And instead of focusing on raw rendering power, instead incorporate hardware that would be both flexible, and focused on supporting retro styles and programming techniques.
What these guys are proposing is actually pretty neat. The primary caveat is that what they are proposing could never be a mainstream-hit system. It just couldn't. The hardware isn't going to be subsidized by software sales, so it will be comparatively pricey to more mainstream products, and always will be. Because of it's more retro focus, the graphics will always be much, much less than what most modern hardware can handle with ease.
At the same time, there is a niche audience that may actually find this intriguing. Game collectors are facing a bit of a crisis with the expansion of digital distribution. As digital distribution becomes more and more popular, physical releases are becoming less likely. This is especially true among smaller indie titles. Some of those games never even get physical releases. For any game that would fit into the Retro VGS's hardware specs, the archival nature of its media would be a boon for classic game collectors.
Also, I found it a little humorous that they got their hands on the original molds for the Atari Jaguar. It's a means of cutting costs, but it's also going to be really funny to see the Jaguar form-factor see the light of day again after so many years. (if they are able to meet their rather ambitious funding goal)