meh, lots of cheap gadgets, most of them are utter garbage. This whole idea will never fly:
1) they are relying on economies of scale they don't have. Yeah they MAY be able to negotiate super cheap components, but only if they order in massive quantities, which they shouldn't do because there is no established market.
2) Even if they sold it for the cost of the components, it wouldn't maek any sense because they would still need to cover manufacturing, shipping, and overhead costs. No way all that rolls into 20 bucks.
3) Nobody would invest in this. The handheld market has never seen success outside of nintendo. It relies on adaption by independent IP holders, who may or may not develop enough interesting material to support any kind of meaningful sales.
4)The business model depends on transactions from sales of the IP for any sort of profit. So if i put money in, I am not making any money back for a LOOOOONG time, seeing as how I would need them to develop, and market a handheld, which would take LOTS of money; wait for IP to be developed for it, which will take time, and then I am only making money once a bunch of people start buying software on this thing, so that means I am banking that there will be enough unique games that people would be willing to buy in order for me to make a profit. No WAY am I taking that risk to make so little money that far down the road.
Its just a bad idea all around...