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I thought we'd covered this already. The Switch Lite is a handheld, it's a vastly different product than the regular Switch. I've bought one cause I wanted a small comfy handheld to play Pokémon, I don't even play the same games on the Switch Lite and on my regular Switch.

The Switch can be used as a handheld. The Switch Lite is a handheld. That's the main difference.

And yes indeed they could release a home console version that would be act like a Nvidia Shield TV, with overclocked CPU/GPU to have games running at a better resolution/framerate and slap a "Switch Pro" or "Switch TV" name on it, but they currently don't do that.