It sounds like a smart idea. This means that they will have tons of games available right from the start. If the emulation is done well enough anyway. I wonder if they will do it like Wii mode for Wii U. I think this would be preferable to using Android as their OS altogether. I was hoping that Nintendo would have worked out a deal with Nvidia to bring GRiD streaming to NX but this is pretty good.
Now all Nintendo needs to do is make a media player run on this and it will be a great all in one machine.