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This is how I would make it:
-Ditch the second screen, I would keep a single 720p capacitive screen.
-Give it the same button layout as the 3DS, only add the second circle pad.
-For graphics, a Tegra 5 processor or equivalnet (so Ps3/360 level)
-It would be able to play games on TV using a docking station: it would use wireless controller and wiimotes for remote play.
-2 version: the standard with a 4" screen and an XL with a 7" screen. Optionally a 3D version or a TV version (like PsVita TV).
-Release date 2017, price about 199$
-Name: "GameboyHD" or simply "Gameboy"