The battery situation is just overall awkward. You're tethered to a battery you have to keep in your pocket. They obviously didn't want to mount the battery to the back of the strap for fatigue reasons. And 1-2 hours battery life is fine for some occasional gaming, but you aren't going to be wearing the thing while folding your laundry into a suitcase like this ad seems to imply.
They theoretically could have squeezed a little more performance/watt with the M3 SoC but it seems they manufactured the boards expecting to get this out earlier.