Before anyone tries to defend this, remember that consoles are not necessarily sold at a loss. Nintendo ensures their consoles are profitable on day one, even if others might be okay with year five.

In which case, yes, they are just iPhones in a big box with HDMI ports plugged into your TV. The only reason you can't do productivity tasks, is because of the restrictions, so the legally-nonexistent claim of "general purpose computing" doesn't do anything here.