Since I want your ideas, I thought I would start with mine.

For my suggestions I would imagine the following titles are ‘no-brainers’:

Space Harrier
Afterburner (or perhaps G-Loc)
Outrun
Rad Mobile
Virtua Racing

I’m not sure how they’d accomplish these titles with the joystick and six-button setup they have, but they’re seen as being iconic Sega arcade titles and I would find it odd for them to be omitted. As for games I would like to see on the mini-console:

Last Bronx
Dead or Alive
Street Fighter Alpha 3 (That six-button layout is screaming for a Street Fighter game!)
SEGA Sonic the Hedgehog (The game would have to be reworked to using a joystick instead of the original trackball)
Radiant Silvergun

While I don’t believe any of the titles above will actually be included in the final unit, I can certainly hope.