I don't mind Atari being a nostalgia company. Actually, when I think about it, at this point their business only makes sense if they embrace being a nostalgia company.
The old company is long gone. Even if it was around, the people/skillset are no longer relevant to game development. There's no engineering/developer continuity, tech continuity, etc.
So it makes no sense for Atari to attempt to compete with other AAA game studios on state of the art games. Compete on what merits? At best they're just a publisher of other dev houses games.
In essence Atari is nothing but a name, and a gaming legacy attached to that name. And what a legacy for a killer retrogaming Nostalgia brand. It seems they're focusing core business around this concept.
I suppose the idea is that they become a publisher of games specifically tailored to retrogamers, heavily leveraging the classic Atari games lineup. A lot of heavy hitters in there. Atari 50 nailed that perfectly, showing that they've figured out how to package gaming nostalgia in product form. They can reboot/reimagine classic games franchises, introduce to modern audiences, etc. Throw in some retro inspired hardware, limited edition cartridges, and other swag on the physical items side of the business.
It seems a more sound strategy than what they've been doing with the brand up till now. Retrogamers may be a limited market, but it's a real market that's currently not being serviced by large companies in any consistent way. They might be able to create a new market segment in the casual gaming space as well. Mr. Run and Jump shows that this idea of arcade/twitch gameplay with casual gaming might have some legs. It certainly feels like Atari.
I'll admit I'm guilty of throwing them money just to get the Fuji logo on some items. I bought the VCS, speakerhat, etc. I love my new 2600 joystick with USB port. So I, for one, welcome our new Atari overlords.