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Because humans can't focus simultaneously on two screens, thus the tablet controller is a waste of $.
Any functionality it offers, can be approximated via gyro or button control of modal information display.
(i.e. instead of changing head angle/ eye focus, tilt controller to bring up alternate view window on screen)
The same budget could have gone towards more GPU/CPU/RAM and all that enables. Or simply a cheaper price.

Yes, young children like the simple games Nintendo tends to prioritize, but that was true on previous conventional Nintendo consoles as well.