Imagine thinking Rare Replay will be a hindrance.
If Nintendo get the ok from MS to put Rare games on, the only issue is going to be the licensing cost. People won't care about Rare Replay, and a lot will never even have heard of it.
Even if not, getting the requisite number of quality games is not even an issue (the only problem would be consumer assumption that they would be there, especially for goldeneye), and arguing in terms of genre is ludicrous. Yes, there are barely any RPGs of substantial length, but the NES classic didn't have issues selling with just StarTropics and Final Fantasy. Drop in Paper Mario and Ogre Battle which are both great games, and other genres are pretty rounded, the N64 has great platformers, racing games, sports games, FPS games and a healthy supply of oddball stuff.
First party candidates:
Super Mario 64
Ocarina of Time
Majora's Mask
1080° Snowboarding
Wave Race 64
Animal Crossing (in Japanese market)
Star Fox 64
Yoshi's Story
Pokemon Snap
Pokemon Puzzle League
Super Smash Brothers
Paper Mario
Mario Party 1/2/3
Kirby 64: The Crystal Shards
Mario Kart 64
Excitebike 64
F-Zero X
Pilotwings 64
Sin and Punishment
Mario Golf
Mario Tennis
Donkey Kong 64
Notice they could equal the SNES Classic tally with first party IP alone.
Third party candidates:
Mischief Makers (do treasure or nintendo own the IP to this?)
Hybrid Heaven
Ogre Battle 64
Tetrisphere
Body Harvest
Turok
Turok 2
Fighters Destiny
WWF No Mercy
WCW/nWo Revenge
Quake II
Snowboard Kids
Snowboard Kids 2
Mega Man 64
ISS 2000
Goemon's Great Adventure
Mystical Ninja Starring Goemon
Star Wars Episode I: Racer
Star Wars: Rogue Squadron
Rare games:
Banjo Kazooie/Tooie
Diddy Kong Racing
Blast Corps
GoldenEye 007 (the most complicated)
Perfect Dark
Jet Force Gemini
Conker's Bad Fur Day
Killer Instinct Gold
I agree, I don't see N64 Classic really being a thing. It was a great console, and I loved the shit out of mine, but I just don't see it.
Now, Sony making a mini Playstation that had like 50 classic PS1 games on it with two original controllers packed in? Maybe even working memory card slots so if you still had old cards/saves you could shove em into a slot and pick up where you left off 20+ years ago or whatever? THAT I would see flying off shelves.
But the N64 was just an ungainly thing that it's hard to have the sort of clean, universal nostalgia for along those lines.
Problem with that is Sony would make bugger all money off it as they barely own any super popular PSX IP. I think Gran Turismo, Ape Escape & Wipeout would be the biggest ones they actually own.