I wasn't a proponent of Nintendo releasing a true 3DS succesor. However after seeing the legs of the 3DS 7 years after release, and Switch not cannibalizing sales, there's still a market for budget gaming. 

My vision is for something just slightly more powerful than the 2DS XL, albeit smaller to cut cost. A price point of $99-129, bundled with a 2D Mario or Zelda (rumored Links Awakening remake?). It's own line of scaled down Switch titles (smaller open world Mario and Zelda), along with remakes of older Pokemon titles (ala Ruby/Sapphire). Also removing the dual screen, and just having a single touch screen to further reduce costs.

With a lifetime sales prediction of 40-45 million, I could see this being highly profitable for Ninty. Of course there's probably no chance of this happening, I just feel they're possibly leaving some huge $$ on the table by not releasing another budget handheld system.

Thoughts?

I would love to see a true successor to the Gameboy Advance.

A handheld focused switch revision probably, but I see no reason for a whole new separate platform. Most synonymous 'Nintendo handheld'/3DS IPs have already turned to Switch anyways. Such as Pokemon, Dragon Quest, Monster Hunter, Story of Seasons, Shin Megami Tensei, Snack World, Inazuma Eleven, Ace Attorney, Resident Evil Revelations, Fire Emblem,  etc etc 

I think it would be severely lacking from a software standpoint unless Nintendo puts a tonne of backing into it. 

Definitely a fair point regarding 1st party software which is why I suggested scaled down versions of Switch titles which wouldnt take the same development bandwidth as ground up software. Not to mention Nintendo could outsource development for their IPs, they've done it in the past.

Regarding SNES, NES minis, those have a ceiling for profit since they're only making money off hardware essentially. 

There is no point to scale back the switch at this stage.

In a couple years time it will drop in price and they can sell a slightly smaller portable only version.

V2 will be the enhanced docked version for gaming on tv.

A smaller $179.99 portable focused Switch should cover that market quite well. I would look for it to drop around 2020 to make a strong Nintendo presence in the wake of the next PS and XB devices.

The solution is GBA Micro 2.0 which plays only Virtual Console games.

Virtual Console 2.0 allows subscription-based access to entire libraries.

The GBA Micro 2.0 also connects to a Switch Joycon slot to play on the TV.

Budget conscious gamers would no doubt spend $300 for a lower budget handheld, several games etc than $300 for a standalone Switch with $60 games. If you type in google "why is Nintendo.." the most searched term is "why is Nintendo Switch so expensive". At this juncture, Switch is still a premium system in consumer's eyes. Id imagine parents of 5-12 year olds are reluctant at this point. A budget system would fill that gap.

True, though I believe there's a market for the $99-129 range as well. The 2DS/2DS XL series has done well and is what is currently pushing sales of the aging system.

Let's also not forget marketshare, why settle for 30% when you can have 40-45%. That always looks sweet to investors. 

Keep in mind, all this is hypothetical as well as wishful thinking because I love Nintendo handhelds. While I love my Switch, it feels more like a home system than handheld and doesnt completely fill my handheld void.

WOW! that's perfect. I Can get behind that 100%

Switch can get their in time. Nintendo has said they plan to support the Switch ecosystem for a long time. I don't see any reason why a $99.99 Switch Handheld can't happen at some point. More die shrinks, less components, a smaller screen, no dock, lots of cost cutting oppertunity.