That is a very cool thing to do with a broken Switch.
As far as Nintendo making a console-only edition of the Switch, I could see them possibly doing that eventually. Definitely think a Premium version of the Switch will release before that, whenever Nintendo is ready to drop the price of the OG Switch. Like maybe in a year drop Switch to $250 and release premium Switch for $300 (probably eventually phasing out the original as well).
But yeah I could see a "Switch Home" released in a couple years as the Switch starts getting late in its lifespan, perhaps for same price as the Lite (whatever price that is at that point - maybe $150). It would make sense as Nintendo is getting serious about gearing up for Switch 2 in a couple years for them to release a cheap simple non-portable version to maybe get a few million more gamers who held out on the Switch because they didn't have any interest in the portable aspect. Switch 2017 -> Switch Lite 2019 -> Switch Premium 2021 -> Switch Home for holiday 2022? Then Switch 2 in 2023 or maybe even early 2024.