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curl-6 said:

Honestly the biggest benefit here would be bringing down production costs by moving to a smaller fabrication process, as it gives them room for a price drop without cutting into their profit margins.

It's selling great at $300 for now, but reducing cost over time is essential for any system to maximize sales over a long lifespan.

Smaller Design without the joycons being removeable things (fused into the design),
no need to add a fan,
cheaper chip shrunk down to 16nm,
not sold with a dock.

They could probably sell it 100$ cheaper than current model.

It would just be a Switch focused at the handheld segment, and it would have vastly better battery life.

I think theres a market for such a device.