from a developers stand point (yes, indie), why invest your time in developing a well polished game (that isn't ad supported) for a console that has a really small userbase? It makes no business sense at all unless UOYA is able to push some serious numbers. The developers don't run the market, the consumers do. And when you have a really small number of consumers in your market, you run the risk of not doing very well.
It seems kind of pointless to discuss the userbase when we have no idea what it's going to do. Sure, if it never grows past ~50,000 it'll be a pretty weak looking market. If it ends up selling a few million, I could see it being a pretty good option for some developers, depending on how well the userbase stays interested.
I fully expect a lot of the early games to be pretty straightforward ports from other platforms (like any console launch really, just on a smaller scale) with a few exclusives from developers who want to capitalize on the launch enthusiasm (again, like any launch). We'll see where it goes from there.
So --------------------------> Why waste all that time, when you can create something for iOS or the mobile Android markets.. or even PC?
It's going to be down to the individual developer of course, but a few reasons off the top of my head:
-You want to make a game based on a sit-down console experience, especially local multiplayer
-You can probably get some easy buzz by making a notable game on this thing, as opposed to getting lost in the shuffle of an app store
-You have (at least at the beginning) a more engaged userbase than the typical mobile audience who favors cheap timewasters
-You have a mass-market mobile platform that it's trivial to port to/from, which can help mitigate some of the risk