Having followed the Pandora project for the last 24 (?) months or so, I have seen how difficult it has been for a team of 4 dedicated people to develop a hand held device, similar to what you are proposing. And the Pandora still hasn't been delivered to the first paying customer yet.
Are you proposing something similar to the
http://www.fpgaarcade.com/ but in portable form? If so then that is something I may be interested in, at the right price (i.e. cheaper than the a current complete minimig).