I don't think Lockhart is a good idea, not this early in the lifespan for next-gen anyway. All Lockhart resources are resources that could be going to Scarlet instead, and early adopters (the people who buy consoles at launch and within the first year or two) aren't THAT price-conscious.
Truth is, most early adopters are willing to pay a premium if the offering can justify the price (and the marketing communicates that). Previous systems that struggled at high prices (Xbox One, Wii U (relative to PS3 and 360 prices at the time), PS3, Sega Saturn, 3DO etc.) didn't so much struggle because of their price, but because for one reason or another they either did not offer added value to justify their premium or did not market their value effectively, or both.
People may want to consider the Neo-Geo in that camp but in actuality that system was always targeted at a small niche market and built for it, and sold pretty well for the market it aimed at. That's because compared to its contemporaries it had a very noticeable value to justify the premium in terms of hardware power, and capitalized on a genre that was blowing up in popularity at that time.
People wouldn't have an issue paying $599 for a Scarlet (or PS5) at launch and within the first year or so if it offered an experience to justify the premium. Great, consistent 1st party releases, strong 3rd party support, robust online, solid multimedia apps, great selection of features etc. Instead I'm worried now a $300 Lockhart won't look like too much of a value compared to a $450 (or even $399) PS5, and if Lockhart's sucking up resources from Scarlet, that means less Scarlets to manufacture and whatever power advantage it has will be lessened because of Lockhart. And it'll look REALLY bad if Scarlet has no power advantage or is less powerful than PS5 but priced similarly or somewhat more expensive, because early adopters will quickly realize that focus by 1st parties has to be split between Lockhart and Scarlet so Scarlet never gets fully taken advantage of, and they might as well spend the extra $100-$150 on a PS5.
I don't see the point in pushing Lockhart day-and-date with Scarlet, not the way it sounds like it'll be. If they REALLY want to target the price-conscious, push that upgrade program plan they talked about earlier, or make Lockhart a streaming-only device at $150-$200 max. At least then the only thing holding it back (and by relation, Scarlet) is the end user's internet speed and any issues with the Azure servers. They'd still be getting a 4K/30 gaming experience somewhat on parity with the Scarlet (but obviously not as good). They can worry about a Scarlet hardware revision a couple of years down the line to streamline the process and sell it for cheaper; that'll eventually get more of the masses on board. Worked for many other systems in previous generations, no need to change that now.
The size and coloring reminds me of a Hewlett-Packard PC I had back in the early '00s. So grey, and so THICC!