Snes Classic comes with 2 controllers. If the N64 Classic came with 4 controllers, it would sell extremely well, even at $100 with 11 games (my guesstimate based on the price increase and game decrease from NES to SNES). It was the party console of the '90s for players of all ages.
Also, while Nintendo lost a large chunk of the teenage and older demo to Sony, the N64 was still more popular with kids than the PS1, at least in America. The only kids I knew with PS1s instead of N64s had older siblings. Everyone else had the N64. Some of them even brought their old-ass N64s to college, a decade after the N64's life.
And honestly, for all the talk of how the games haven't aged well, they're still largely playable and even enjoyable. I just played Majora's Mask N64 for the first time three years ago. Kinda ugly? Yeah, definitely. But still very solid and engaging, even surprising, from a game design standpoint. Hell, low-poly 3D is practically a hip aesthetic these days in the indie scene. If a game is designed well it'll always be worth playing if only for historical significance. Mario 64, Ocarina, and Golden Eye were all seminal, massively popular, massively influential games.
Will parents be buying N64 Classics for their kids, the way they did with the NES Classic? God, I'd hope not. That would be like getting the Atari 2600 Flashback for your kid. Ain't no way they're having fun with that. But you better believe that millennials love the ever-living fuck out of the N64, arguably even more than the PS1.