Gamepark wanted to do a more expensive PSP clone with a widescreen, 3D, custom battery and analog controls. This would be not as well suited for emus but aimed more for commercial titles. It wasn't until recently that they flip-flopped and decided to make it more GP2X-like and HB friendly. They probably finally realized that they had absolutely no chance in the commercial market against Sony and Nintendo.
Where does this information come from? GPH? That's not the story I was told by Gamepark. They said they
never wanted to get rid of the homebrew aspect of their consoles. They did, however, want to make a more commercial-friendly platform though, which clearly wasn't something GPH is interested in.