I like the specs and it's a good concept, but like others have said, it has to have buttons included in the phone for gaming. With those specs, they could also release a tablet that wouldn't be much different in design from the Wii U gamepad so both systems would share the same library. Heck, with those kind of specs they could potentially use it in their next console as well. Here are some design ideas I think they should look to for inspiration:
Cell Phone/Portable -
Either use a slide screen with the buttons underneath or keep the clam shell design with a rotatable screen with the buttons underneath.
Tablet -
The gamepad is pretty much the perfect gaming tablet imo. Nothing needs to change here.
Console -
If they're using the same specs for all three, they could have an inexpensive, very small, power efficient console. They would have to drop disc support and go back to cartridges as well as putting a bigger HDD in there. The design of Ouya is more a concept idea than a physical one, but the idea is that they're going after the Roku/Apple TV market with the ability to also play games. The game controller would also have to have a touchpad or mini touch screen added to it for games that require it. A Wii remote might also be bundled for navigation of the system OS as well.
This is one idea I think Nintendo could pursue going forward. I call it the "Hybrid Route" but it's really just three systems, all with the same specs. This way, Nintendo's internal resources aren't spread so thin and they likely won't run into the third party problems that have plagued their consoles since the N64. Of course, this would require other, drastic changes to the workings of Nintendo all together, like their online network and account management system.