Correct. You can boot to the frontend but not any of the actual games (actually, I think one works and the rest don't? I forget). Maybe the new compilation will work, who knows.
I have to say it reminds me of the IOS reload problem that affected game compilation Wii games usually when played on USB loader such as Metroid Prime Trilogy, House of the Dead 2+3 and Sam & Max (I think in this one episode worked) or might be a side effect of the crashed system menu that region free hacks on the 3DS do (pressing home locks up the system). The latter can be tested with a Japanese system (pointlessly use region hack to run game there) and if it works perfect then it is some sort of system language compatibility (that you also saw sometimes on the Wii, basically game would detect it is running on an English system and try to load a non-existent English script file and crash).
I think it is unlikely they will change the frontend and game bundling for this compilation so I'd also expect it to remain non-working.
I personally hope in the west we get a faux series 3 comprised of the retail exclusive games in the west as the USP in Japan for those releases are the exclusive games but it seems daft to leave the games on the table (also don't forget improved version of Space Harrier seen in the retail release).