I still think if Nintendo only cares about a system that is "cheap and affordable", they should just release a "Vita TV" version of the NX portable. Whatever gimmick they have could surely still run on that hardware and they could sell it at a healthy profit immediately.
If Nintendo's targeting something at least in the ballpark of XB1, why not spend the extra money ($20-50) on parts to get some chips in the box that will outclass the PS4? Why would they even be targeting the XB1 and not the PS4 when Nintendo historically hasn't cared about Microsoft?
I know you're saying "Nintendo made Wii & Wii U underpowered, cool, and quiet to appeal to the Japanese console market! Why wouldn't they make NX the same way?"
Remember, Iwata said in March:
The logic for Nintendo just being happy with enough power to make XB1 ports possible has never made sense.
Maybe they want a modest amount more power over the Wii U for their internal purposes, but unless the gimmick is killer it's going to be hard to sell people on upgrading.
I just think it's way safer for them to modestly, yet clearly outclass the PS4, especially since they can always release the "NX Portable TV" if they feel the need to go cheap.