From the standpoint of a casual gamer and movie buff in college, I would not mind paying a measly $99 for a reasonably powerful device that can plug into my TV, let me easily use my XBMC server, Netflix, Youtube, and Hulu Plus whilst allowing me to play some of the excellent games Android has brought me.
MADFINGER makes some really well scripted games with the best graphics I have ever seen. Samurai II was maybe a dollar? And the artwork is fantastic and it's a fun button masher with a comic book style. Shadowgun is $2. Gears of War really isn't that much different, and it's $60. Need for Speed Most Wanted is the most fun I have ever had playing a racing game.
Dead Trigger is free, as is Subway Surfers and Temple Run 2, and a plethora of Freemium/Server games. The games are good. And as much as I'm a snob about my games, some free ones kick butt. And end up being maybe 50 megabytes. Which is surprisingly well optimized.
We have enough big names to keep my hardcore side and a friend entertained. Need for Speed, Minecraft, Dead Space, Grand Theft Auto, Sonic, Call of Duty, The Sims, etc.
And I mean, emulators... games from classic style devs like Gamevil.
And keep in mind if the games are well optimized they will look extremely good, just compare the first 360 games to Halo 4 on the same Xbox.
No more subscription required to play your darn games (XBL)
And then the nerd activist in me enjoys an open source movement, a toy to tinker with, an emphasis for indie development, and better market competition. The team interacts with users. Oh and it's a brushed aluminum box that can replace my Xbox 360 and Roku 2 both of which I hate! Cool.