So, basically a computer, but limited, and a lower bar to entry.
I understand the use case for those that might not have a traditional computer or a very old one, but presumably everyone here would be better served by either shelling out an extra $100-$200 every couple years for a better video card in their laptop (if that's the only system them have), or dropping that on a discrete video card and sticking it in their current desktop?
I'm having trouble finding a case where I'm not better off buying a cheap Dell desktop and throwing a mid-range video card in there for approximately the same cost. It's a little bulkier, but I imagine Steam's Big Picture mode probably does a good job of the interface.