Option 3: Blaze the trails for the next evolution in console gaming by combining the handheld and console into one device. The controller is a handheld/tablet/dual touch screen whatever but it can connect wireless and stream to your tv like a console effortlessly. Have a small device or box the connects to your HDMI, maybe have a HDD installed but its main purpose is to be sort of a wireless docking or home station for your handheld console.
I feel you can do 3 with 2 since you're targeting the same price point, internal hardware, and set of developers.