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I'm kind of the opposite mind.

If the handheld is weak in terms of specs ... people are going to scoff at buying it to play $40 games.

If you want to sell $40 portable games in today's market they better damn well be very high end games in the era of free smartphone games.

I think they need to go upmarket, not with a cheapo handheld. This is a narrow view of thinking.

If cheap handhelds were the answer here, why is the 2DS and cheaper regular 3DS models floundering more or less and not giving the 3DS the boost that it needs sales wise?

Also the unified platform thing doesn't work if the handheld can't run any of the super-awesome console games without having to be completely remade basically because the power gap is so large. That's not a unified platform. That's the same shitty situation they're in now.