Yeah, that price tag is kind of bugging me, especially after the NES Classic, SNES Classic, and Playstation Classic were all $100 or less and had more built-in games. The ability to play 7800 and 2600 carts is cool, though.
I think they're going for the Analogue market. Real hardware for real cartridges, built to modern standards (like HDMI).
Two problems:
Analogue consoles are all FPGA. This isn't. It's more like the Hyperkin consoles from that perspective.
I'm not sure how much demand (read: nostalgia) there is for these older consoles these days. At retro game conventions I haven't seen much. It's mostly NES and later.
Atari probably could have won over some of that market if they used an FPGA, but they've gotten this wrong again and again by contracting with companies who put an emulator on a SOC in a box.