I can see it as a low-cost Android gaming device, yes... but that market is already dominated by Chinese knock-off products. In my opinion, the Ouya should've been an infrastructure for games, not a console - it should've been made compatible with Android devices of all-sorts and should provide an alternative for the Google Play store and the PlayStation Store (For PSCertified) with exclusive titles and organised multiplayer - the first is always welcome, even if hackable, the second is a glaring issue of Android as an open-source system. Think of it as "Steam for Android"... But I digress.
I suppose it's a cool "gadget", but not really a competitor on the market compared to the "Big Boys" coming from Microsoft, Sony and Nintendo. It's optional, but definitely not an "alternative".