This looks half-baked. Why did they omit the second analog stick and extra shoulder buttons needed for proper PS1/N64 emulation? Why is the screen only 320x240 when there are games, even going back to the 80's arcade era, that could benefit from say a 640x480 screen.
I'd guess that some of those features were omitted to keep costs down.
I would have loved a 640x480 screen, and you're right, there were even some early 1980s games that could benefit from that. If there's one thing I would change, that would be it. But that might jack up the price to something unreasonable.
Even something like the Genesis only displays at 320x224, so you'll still need to scale the image to properly display the intended 4:3 ratio.
Well, 320x224 on a TV doesn't usually have square pixels. You'd have to get a very unusual custom-designed LCD to get a native 320x224 with true 4:3 ratio. Most devices on this level would just display 320x224 pixels at 1:1 mapping, with a border around the image. The
very slight aspect ratio change is not that big of a deal. If 4:3 is preferable over 1:1 pixel mapping, then I suppose the emulator could do a slight vertical stretch.
The other thing is that a lot of other 1970s and 1980s systems have different resolutions, such as 320x200, 320x192, 256x224, or 256x192. 320x240 is good at "containing" all of these, with only minor changes in the aspect ratio in most cases. The alternative would be to create multiple devices, each with a different resolution (and differently shaped pixels, in many cases). This is simply not feasible.
If this project is successful, then perhaps its creators could consider offering an upgraded 640x480 version in the future, with extra buttons and a second analog stick. For now, though, I think this looks like it is striking a good balance of features with a reasonable price point.