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I still think it's a bad idea... not just having a Lite version now, but because you are selling an inferior version - and not just a little inferior product.

Nintendo didn't need a portable version of the console. Specially not now.
They are risking confusing people (like they did with Wii U) and leaving a sour taste on consumer's mouths. Not to mention that the old "play anywhere, etc, etc", that will still exist, will make people think twice on buying a handheld when they already have that with the regular Switch. That and the fact that some things aren't possible anymore (HD rumble, IR Motion).

Don't really understand who this is supposed to cater to.

If they wanted a handheld that could play Switch games, they should have done so. It would have been so much better.