I looked up "Bob's Game", And I have next to no respect for that guy anymore. Although, I am quite confused as to whether it's all a big joke or if he actually did and believes all those things. He claims to have gotten offers from 12 different publishers to publish his game on the DS, and then to have turned them down. He says he wanted Nintendo to make their platform open to indies, and then after failing he decided it would be better to make his own console for indies. But nothing he says can be believed... I'm pretty sure a console with those specs would only be attractive to developers like myself who like to tinker anyways. But regardless, I have to say I agree with you about the nD now.
PS, you should add some sort of character counter to this text-box so I can see how many characters I have left.

If perhaps your doubts are more about why a person would make something like this and sell it at a price just to break even rather than profit, consider the whole world of open source software.

I didn't intend to write such a long letter. But the point is that the nD COULD be successful, and you shouldn't be so quick to reject that possibilty.

If perhaps your doubts are more about the feasibility of a hobbyist to develop such a thing and obtain the parts, the field of electrical engineering is actually very open. Anyone can sample microcontrollers from places like microchipdirect.com for free, and there's a wealth of information and tutorials on the 'net for how to interface with displays and such. Personally, I've gotten a pic microcontroller to output video to VGA as well as a cheap cell-phone display, and audio to speakers. It's not much further to go until you've got a stripped down handheld console like the nD aims to be. Some people have even independently developed more advanced consoles than the nD just for personal use.

@Badspot
Sorry, I have to split this across multiple comments...
I wouldn't be so surprised if the nD was actually released. Just look at all the hype from people like Alp. There are thousands of people that would buy it in an instant (including myself - I've always enjoyed tinkering with things like that). He projects his price to be $10, which is a bit of a stretch. I think it's more for marketing purposes. However, it is a very lean design. He could probably get $20/unit in bulk, especially if he settles on a cheap battery. If he sells it for $20, it's still dirt cheap enough to where all the people excited about it will still buy it.