Let's see:
1: Come out in America a year-18 months earlier
2: Use a 65816 or at least a 65C802 or Hitachi 6309 for the CPU Core, at least 4096 colors in the pallette, the graphics architecture of the SuperGrafix, and a max resolution of 512/640x480
3: Included an RGB adapter and composite RV out, too
4: Redesign the controler to be at least a little less follow-the-leader to Nintendo. The turbo switches are a nice touch, but not enough. I would have included an analog stick and/or at least four action buttons, and included four control ports using the Atari 9-pin interface on the American version.
5: Kieth Courage in Alpha Zones is a nice tech demo but way too short. I would have used either JJ & Jeff (Licencing the likenesses of Gilbert Godfried and Charlie Sheen) or Alien Crush.
6: Come out with a cheap progressive-scan TV, and
7: Offered the Turbo-Grafix 16 to the Tramiels to sell in the Americas and PAL Markets (Except for India and Australia) as the Atari 10400. Since they were based on the same basic CPU architecture (Assuming I don't use the 6309), porting from the 2600, 5200, 7800, and 8-bit computer/XEGS should be a breeze, and since we use the same port, the XEGS Light Gun can plug in too.
If we can keep the price under $100 (which shouldn't be too much of a problem) and quality control up (since we will be releasing our own video games under the Turbo Technology label no matter what Atari does) we should reel in a winner.
Of course, as always, there's always something to screw things up...