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.
Necro-bump this 2020: http://gamrconnect.vgchartz.com/thread.php?id=229249
Bumb in 2021: http://gamrconnect.vgchartz.com/post.php?id=9047071