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I'm going to go with more power just because I don't think I'd want a TV only option and since I'll probably be carrying the Switch in a dedicated carrying case, the size isn't that important to me.

Also, yes, if you want more power (whether graphically or battery wise or whatever) the system would actually have to be a little bit bigger, so you could expect to make the screen larger as well. Batteries tend to take up a big part of the interior guts of these things