If the system does come out, I have a feeling lack of real force in homebrew and emulator development would kill it. CPU-wise, it's on par with the Gp2x, and yet it apparently has less RAM? The Gp2x already has a fairly low amount of usable RAM if you take into consideration the very slow access to the upper 32 MB of it. A GPU won't accelerate emulators, you need to actually EMULATE the rendering engine in the console on a normal processor, you cannot usually (accurately) simulate the same experience via a GPU. PSX and N64 emulators that use PC video hardware are using a nasty hack of sorts to achieve higher resolutions and ease CPU load, etc.-- but it's rare and horribly resource-intensive. Simply put, it won't do any good on the XGP.
As for Quake 3. The game relies so heavily on floating point code, and it has such an obscenely high RAM requirement when viewed from a portable standpoint, that the concept of it running at higher than 5 FPS seems exceedingly absurd-- even if they DID rewrite it to operate with whatever (probably proprietary and poorly-documented) GPU they pick for the machine-- which would be a fairly heroic undertaking (... I don't see it happening, is what I am getting at.)
The GP2x was a messy rushed design/launch, but it worked-- far from perfectly but it worked. The XGP stacks the same poor odds of success even higher against GamePark by trying to sell a more expensive unit that's incompatible with all their other hardware, will likely have a meager-at-best homebrew community, and making a bunch of unfulfillable promises..