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This could really only work as a third pillar. It could work alongside a home console Wii U successor and a more traditional portable 3DS successor without backwards compatibility and no second screen.
If this was one of Nintendo's only current handheld or hybrid offering, it would flop hard. Not as bad as Virtual Boy, but probably Wii U sales or worse.
The lack of face buttons and the placement of the sticks is so bad.



Lifetime Sales Predictions 

Switch: 151 million (was 73, then 96, then 113 million, then 125 million, then 144 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 57 million (was 60 million, then 67 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima