And that's one of the coolest things that can happen to technology, releasing something that on paper shouldn't work but it works. 

That's a fair point, but in this case I feel like its carried a lot by it's brand. There is a reason why it doesn't work on paper after all. But like I said to each their own.

I imagine they didn't want it competing with PS5 hardware initially. Now it can essentially function as an alternative to an actually PS5 if your Internet is solid enough 

It's a distinct possibility. We certainly know now that the hardware capabilities was always there (which was kind of obvious).

It can not store up games itself to be played locally right? Meh.

Nah, that would be like counting the Super Game Boy sales as Game Boy sales, since it's a device that allows you to play Game Boy games without the Game Boy. Actually there is even more of a case for the SGB to be counted as a GB since it runs the games locally instead os streaming them.

I have no idea what Super Game Boy is supposed to be, so I can't make an argument either pro or against it counting as GB sales

But if PS Portal is rebranded as PS5, play all PS5 library (even if streaming) and you don't need a standard PS5 to use it, then it's stand alone PS5 and part of PS5 family

A cartdrige to put into the SNES, it has a hole on it that would put your gameboy cartdrige to play it on the SNES.

On the topic of it having a case to be counted as a gameboy = LOL