I don't get it. Barely any smaller and cant play all games. Are there really that many people who only play in handheld mode?
It's actually a fair bit smaller, maybe more than it seems. I put together a size accurate comparison image based on the measurements Nintendo gave.
Also the only games I can think of that don't support handheld mode are Super Mario Party, 1-2-Switch and Labo, only one of which is a loss.
One good thing that can be noticed form this image, they didn't shrink down any of the buttons or analog sticks.
Predictions (Made July 2019)
LTD: PS4 - 130m, Switch - 110m, XBO - 52m 2019 : PS4 - 15m, Switch - 18.8m, XBO - 4.8m 2020: Switch - 22m (Peak Year)