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It can be a "home console" ... it's just a mediocre home console, Sony and MS control the home console market now.
Nintendo either needed a new break through fad controller or competetive hardware, which it doesn't look like they really have.
This will sell to the same 20 million hardcore Nintendo fans that are willing to buy a Nintendo console, but for "home console" usage everyone else is buying a Playstation or XBox.
The main audience here is the 3DS audience, by creating a hybrid device, Nintendo can at least get some of them (and most Wii U owners own a 3DS, so they are already in that crowd).
I think as someone else mentioned above Switch will still sell under the 3DS because the portable market is shrinking, but at least that's a still somewhat viable audience for Nintendo.
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