It won't be a "switch" device. That won't work as the system is built around a lot more than just being able to dock. Instead you'll see the Switch reduce in price and upgraded models will launch for around the same $300 price point every couple years just as we are seeing with Xbox and Playstation.
Instead the core of your point could happen but it would be a some other smaller / cheaper handheld that played switch titles that don't require the joycons functionality such as motion, IR or HD Rumble. That would be a smaller single screen device with dual analog controls which could still play switch retail and digital content. That could appear for well under $200, with a more kid-friendly look/feel similar to how 2DS was aimed and younger kids.
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