Re: This from the founder of the company that created the Atari Lynx?
The Atari Lynx was an outstanding machine by the standards of the time.
That said, the incarnation of "Atari" that sold the Lynx wasn't Bushnell era Atari Inc., but Atari Corp., the company formed after Atari Inc. was split and Jack Tramiel bought the console/computer division. Though it had some continuity with its predecessor (*), it was quite different in many ways.
Though the Lynx probably suffered due to its (initial) high price, large-ish size (**) and battery hungriness, its other major problem was that it was sold by Atari Corp., who couldn't market their way out of a paper bag. Not helped by the fact that Tramiel-era Atari Corp. was obviously a low budget operation (***) that couldn't- or wouldn't- spend the money on marketing required to compete with Nintendo and Sega. Hence the lack of big-name licenses and knock-off game titles like "Dirty Larry: Renegade Cop" (regardless of whether the game itself was actually good, that makes it sound cheap).
(*) Unlike the present-day "Atari" which really just the company formerly known as Infogrames after they bought the rights to the name and IP, and has no other connection to the original company.
(**) Addressed slightly with the redesigned "Lynx II". Apparently the original was so big because alleged research had "told" them that customers liked that because it made them feel like they were getting better value, or something.
(***) Some described it as "penny wise, pound foolish", though I suppose you could argue that the market had changed since Atari Inc.'s 1983 fall from grace that prompted the sell-off, and that Atari Corp's "second tier" status was an intentional business decision.