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I would be not angry but disappointment if device like that would have price $300 or more, but if would have price around $250 or even $200 I think it would be interesting.

About power of hardware, we all know that CPU is weakest part of Wii U hardware, so more capable and simpler CPU is very likely, probably ARM 4-6 core CPU. Ram is pretty cheap, so we can easily get 4GB instead 2GB on Wii U. And probably more modern a some more capable Wii U GPU. I think hardware like that would be enough for Nintendo games in 1080p, we already have some Nintendo games in 1080p on Wii U.