I may show my age here, but I still have my original ColecoVision and it still works to this day. I can only play it on the 27" TV that I use for my C64 and Atari 2600 as I can't actually plug it into my 61" HDTV, but eh nostalgia is better with scanlines anyway.
That said though I have zero interest in something like this Coleco Chameleon. Those game prices sound way too high for what they will be, and it just seems to me like anyone would be better off just buying some used older consoles and getting games from flea markets or Craigslist and such. I mean let's be honest, is anyone going to spend that kind of money for decades old tech games today? These kind's of games sell for $10 or less at release on today's consoles via homebrews or indie devs, it just seems like a market that really doesn't exist due to them pricing themselves out of it from the get go.
Now, a retro console like this that shunned cartridges or physical media completely and instead distributed software via an online store, similar to Steam, which would also allow anyone to develop their own games and sell them online (like Steam) where the console company, in this case Coleco, would get a small cut of the sales (again, like Steam), well now THAT's something I could see getting some traction and developing a market of it's own.
Eh, I wish them good luck, I think they will need it.