"There will be no system updates, digital downloads or buggy games."
That part I love. I would actually buy an entire system based on this promise, but not this one. Every single other thing about this idea is dumb. He wants to "promote collectability?" Is there seriously not enough of that? Do we not have dozens of threads on this forum alone documenting how completely out of control "collectability" has gotten? Aren't Amibos stupid enough?
And using a Jag case...I'd have to see the specifics but this doesn't make much sense to me. The advantages should be few if any. The PCB should be a fraction of the size of the Jag's, so it'll need to be designed, unnaturally, to stretch to to the mounting points inside the case. You could retool the case or produce an in-between riser peg system or something, but if you're doing this at a level of mass production needed for a machine like this then it seems extremely unlikely that using old Jag molds would be cheaper than just drawing up a new case. This is 2015 after all. Then there is the stigma of having your brand new machine look exactly like one of the shittiest excuses for a console to ever be built, which is considerable. It's not that the Jag shape is bad or anything, in fact it looks great in alternate colors, but a pragmatically thinking person would have to wonder why you, as a console manufacturer, would be cool with reminding people about the Jag with your new machine. It's quite likely that this guy ACTUALLY THINKS THE JAG WAS GOOD, and do you want to buy a machine from a maniac like that?
And then there is the question of software. I'd love to play a 16-bit Yoshi's Island 2, but who's going to make it? Nintendo is busy making other stuff now and the indie programmer scene, by and large, hasn't really shown me it can actually make legit AAA games in the style of 20 years ago. The economies just aren't large enough.