Don't get me wrong, when I get around to buying a 3DS (for A Link Between Worlds), it's not going to be this version. But I'm not the target for this version.
I understand that I'm not the target demographic for this, but we're talking about a $40 price difference. That's nothing. If you want to buy a cheap 3DS for the kids, just go to Gamestop and pick up a used 3DS for around $100.
Nintendo tried this once before with the Wii Mini for $99. I wonder if that was successful.