As it stands today, the console's quite powerful but lacks the software to back up such a high price. I suppose it goes well with NVidia's previous statement about the PS4 being "netbook grade" in the sense that they're not pulling any punches with this one.
Unfortunately the only way I see this possibly working out as a genuine gaming system is a huge advertising campaign to draw in developers and get some TegraZone-exclusive software that really shows what the hardware is capable of... which isn't very likely to happen as developers will always opt to release their Android apps on the Play Store simultaneously with TegraZone given the chance, simply to attract more potential customers.
That, and I agree that the system looks hideous and in fact not very portable. Shape-wise it seems to be a flattened 360 controller with a screen - not something you'd carry around, at least not in your pocket... maybe in a bag/backpack or a special case.