You're kind of arguing against yourself, here. If the point is to impose limitations in order to reduce choice exhaustion and foster creativity, then portable software like PICO-8 can do that just as well as a physical device, and creators will have a much larger potential audience.
I've often daydreamed (I'm sure I'm not alone) of making various kinds of electronic entertainment devices with very low specs as a challenge/creativity booster to myself and other creators. But I always come back to the realization that it makes much more sense, in a world where almost everyone has a powerful computing device with plenty of storage and a responsive colour display in their pocket, and constant Internet access, to implement them as software rather than hardware.
A handful of people may be excited enough by the physicality of a device like this that they'll buy it, but many more people will pass it by. Look at the proliferation of games for software-based formats like PICO-8, Bitsy, Inform, and Twine, compared to development on purely physical "low spec" devices like the PlayDate. Even real vintage systems are starting to become software-based formats; new games developed for them these days will often include an "emulator-friendly" version if they do anything particularly tricky with the original hardware.
Very similar variants of the same CPU and VDU were used in the Colecovision, the MSX, and Sega's early systems, among others.
I've also read that there were several ports from the ZX Spectrum to the MSX, due to them sharing essentially the same CPU at the same clock speed, and the MSX VDU having a video mode that could operate similarly to the Spectrum's display.