Maybe the screen is detachable.
Then the regular switch 2 would have the processing unit with 256gb, a screen to attach, controlers, ative cooling dock
And create cheaper options from it: the processing unit with 128gb + a cheaper screen+controller shell.
Another option is the mini console like: processing unit+ dock+controller, for TV playing only.
Also, would allow to upgrade the screen, or even other screen designs, like clamshell, XL, or regular in oled.