The Neo Geo X was not created for the hardcore gamer that already has these games on various systems or emulators. It was not designed for those who know how to work the ROMS on their third party home or portable systems, and are willing to spend the extra time dealing with tricky & extensive software installs to get it done. So when these people talk about how this is a waste of money it goes in one ear and out the other. It's like watching people denounce Apple products because they know how to setup a Hackintosh. Sure it can be done (and I own two in my music studio right now), but for many people they don't have the time to dedicate to such an endeavor. They want something that is simple to operate and just as simple to maintain. They don't want to "geek out" and use all of the available technological trickery to do it.
This is geared at a new audience more than anyone else. My ten year old nephew fell in love with my Neo Geo Cart system and is constantly asking me to use my Neo Geo Pocket when he visits. Although I allow him to use the games when he's here, there's no way I'm going to let him take these systems home with him out of concern that they would get damaged. When he saw the Neo Geo X he instantly saw he could play many of the games that I have in portable form, so he showed interest in it. Sure, I could purchase a Dingoo A320e, a GP2X WIZ or anyone of the portable handheld that can run emulators, torrent all the ROMS and set it up for him to do it. But that's not what most ten year olds want to deal with, especially if something corrupts and requires a complete reinstall of software. They just want it to work so they can play. On that basis alone, I would definitely consider getting him a Neo Geo X.
Some people need to realize that despite how dedicated and hardcore you are about about a particular thing, you may not always be their target demographic.