U just keep going back in circles, NOT EVERYBODY PREFERS A HANDHELD FORM FACTOR.
What if u want to play games like Kid Icarus, Mario & Luigi, Paper Mario, Animal Crossing, Luigi's Mansion, Tomodachi Life, Bravely Default, Monster Hunter, Fire Emblem, Pokemon, Zelda remasters but u prefer consoles over handhelds?
What if ur a parent looking to get a gaming device for their young kid, would u choose the $130-200 hardware with $30-40 software or the $300 hardware with $40-60 software?
I'm not saying there isn't a market for that potentially, but it's likely fairly small perhaps even smaller than the current Wii U audience. How many people choose the PSTV over the regular Vita? If you're buying one, odds are its the portable flavor.
Kids generally choose which console they want, not the parents. I never let my parents get me a discounted Sega Master System when I wanted a Super NES, I made damn sure they got me the SNES.