Seems like we have, or some of us have, or just I have, been looking at it the wrong way. This is not a new rebranded Android TV device. It's the 3rd or 4th gen Chromecast.

This helps explain the price and the non existent storage. Makes it less appealing. Less than a gig of available storage means they aren't competing with Fire TV. It's just a better Chromecast. Nothing more.

Edit: I have been corrected on the available space. My bad on that one.