I was thinking about buying that device, but then I remembered the marvelous PSN Neo*Geo ports, with lots of extras, a music player (PSG?), etc. And the games doesn't look butt-ugly in HD by the way.
The Neo ports on Wii are the best, IMO. Obviously the selection could be better.
I'm actually surprised by how obsessed people are with the "console" aspect of the NGX. While the output is certainly terrible I personally don't care at all. I bought it to use as a handheld. Neo emulation on computers was nearly perfect a decade ago. If I'm going to sit down at home to play Neo I'm going to just play my MVS or, if I don't have the cart, I'll use an emulator for Windows or OSX. The handheld aspect is why I bought an NGX, and that part they did a pretty god job with.
That being said, if they don't improve the video (built in and HDMI) with this update I'm going to be hella pissed and I'm not buying the next wave of games, assuming they even manage to make that happen.