Hmm... so it's more of a handheld with video output than a truly hybrid system.
The biggest problem is that it's very lilkely this will fall into the problem that Wii and WiiU faced interms of support. It's not gonna be able to keep up with the current gen consoles and be left behind interms of 3rd party support.
But actually, this probably makes the most sense for nintendo.
Their home console business has collasped, and it's gonna be almost impossible to regain marketshare from sony and MS, even if there was spec equality. so focusing on the handheld niche makes a lot of sense. Especially since Sony is likely to make a vita 2