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It's a pretty good idea. It pulls down the price of entry to be able to play 3DS games, and makes a profit. It'll make it more affordable to upgrade from the DS, which will be fueled by the new Pokemon that'll be released on the same day.
They couldn't make it look more like the original flip DS instead of this big ugly piece of shit? I've always enjoyed nintendo games but after the Wii U and now this i'm really thinking they need someone new to steer this company in a better direction.
It's target market are 6-10 year olds who want the latest Pokemon game and either their parents don't want to shell out more for a 3DS or parents think that 3D will ruin their kid's eyesight. That and it looks like it can take a bit of abuse over a clamshell.
I think most adults will just get a used 3DS for about the same price on craigslist.