Or they could just put accelerometers in the controller. Android already supports it. The kernel would have to be programmed to interpret it, though.
I'm hoping Ouya becomes a success. It strikes me as the next Wii. Everyone thought the Wii was going to crash and burn because it didn't have the hardware specs that the 360 and PS3 had. IIRC, the Wii sold almost as many units as both of those consoles combined.
It depends on the focus and the exposure. If you focus on fun games that are easy to follow and can be played for hours on end (with friends). You win. Nintendo has proven it and continues to prove it with their line of cheeky games on their consoles (both home and portable).
The ~100 price point is going to be another thing. Those of people who do not want a tablet, or want a smaller phone, but still want to play these games will probably like Ouya. Those of us who are tired of Android fragmentation will likely want Ouya. As a standard gaming platform, it'll both create fragmentation but solve some of the issues simultaneously. Just like Amazon.
As for FF3 costing $15. Yes, that is outrageous for a game that was released 18 years ago. Would you pay $15 for Super Mario Bros 3? Or the Legend of Zelda? There are other older games that have been ported over and cost in the $3-5 range. Sonic CD comes to mind. If Square keeps up the premium pricing for their classic games, they're going to earn a lot of ire.