To further elaborate, there is nothing inherently wrong with the idea of a TV only micro-console. Vita TV didn’t necessarily fail because of its design, Vita was already a failure so the ability to play its games on the TV isn’t much of a selling point. Plus it was barely marketed.
Switch on the other hand is a massively popular device and if you’re a PS/XB/PC gamer who doesn’t care about handheld play and is only interested in a handful of Nintendo IP (let’s say Smash, Zelda & Fire Emblem) might not be able to justify buying a $300-350 hybrid but might pick up a $150 micro-console to play those few franchises.
Plus it would be a cheap, end of life revision with likely low R&D costs so it’s not like it needs to be a smash hit. Even selling something like 5 million units would probably be plenty in Nintendo’s view.
When the herd loses its way, the shepard must kill the bull that leads them astray.
