The more I think about this the more it feels like they're just doing so much wrong...
I'm not really the target audience for this device so I could be way off base, but if I were trying to make this sort of thing work here's what I'd do differently:
1) Forget the Jaguar molding, even if it saves you a little money. The case looks tacky and it's too large and it's associated with a failed and largely mocked product. But the real downside is the cartridges. Bigger carts means more expensive, more storage space, and Jaguar carts are really weird for putting on a shelf with their handle and all that. You want smaller carts so you can use smaller PCBs and save money. If you really feel like ripping off an old design it'd be cool to see something like HuCards again, especially now that you can shove a lot more into that form factor.
2) If you want to have a CPU + FPGA make that CPU some Atom variant. That gives you two things: lets you make it a Steam box with a decent library and makes it easier to test the FPGA stuff against a normal PCI-Express connection (meaning you can more realistically develop it on a PC too) instead of some weird custom thing.
3) Stop going for this whole cart-only purity angle. You've got to sell the cart thing as value added. It's great for playing original games (and homebrew) on FPGA cores, and some people will go for buying new games on carts for the novelty/preservation factors. But it's not enough to sell the thing on its own. This isn't going to get ANY meaningful number of exclusives, and if it does none of them will be system sellers. And the carts are going to cost so much more than similar quality games cost on Steam. You just can't bet everything on it. SD card slots, USB storage, and ethernet (and even wifi) are cheap additions. You need to make this something more than what's being sold to ever come close to justifying a ~$300 cost.
4) In this day and age expecting people, ESPECIALLY indie devs to get games perfect without patches is a total pipe dream. A good compromise would be a patch RAM system to supplement the carts if necessary. Or partially rewritable carts.
5) Forget analog video output, or handle it via an adapter. It's not worth the cost, something Kevtris is basically demonstrating with his pitched console. Especially don't push it early like it's this some big impressive feature because it really isn't.
6) Stop trying to get anything patented. Stop flinging mud at people online. Stop giving interviews where you say vague and contradictory things and ramble on about nothing.