Good thing we got the Switch. Yes, Switch was clearly weak for a home console in 2017. And is super, super weak as one in 2022. But Switch was pretty decent in specs for a handheld by 2017 standards. It's pretty much the first Nintendo handheld to not be weak in specs for its time. While this dedicated handheld would've been above the 3DS and Vita, it would've been far weaker than the Switch Lite.

Looks like they dodged a bullet. Weak proprietary hardware and capacitive buttons isn't going to set the world alight. After the 3DS and Wii U, they needed to change their game and NX did that for them with a good hybrid design.

The strangest thing about Nintendo, imo, is how they left the home console market and no one noticed because they allowed their next super-powerful, HD handheld to be played on the TV. It was a master-stroke of marketing genius on Nintendo's part, to be sure. But I'm still shocked no one in major media pointed this out.

You know, I wouldn't have complained if the Switch did come with a 3D display.

Those hardware specs are pretty underwhelming though... And the limitations would have become readily apparent, very quickly.
I guess that ship got abandoned when the 3DS launched to slow sales.

But... did they leave the home console market?

If the Switch was exactly the same except for the fact that it was a traditional box with no screen and the Joycons were just seperate, would that be a home console? If so, I don't really see how adding the screen would make it not a home console. I think it can be both.

With these specs, probably imagine a Vita game in 3D, with Wii U shaders.

Or take a game like Mario 3D World or Splatoon 1, put it in 3D, but with reduced the resolution and textures.

Technically, it's a hybrid. Which also means technically, it's not a home console. But it's pretty obvious to me that Nintendo pulled a fast one on all of us, including myself. Because not many years after it launched, they even released a dedicated handled version... which is something that never happened with the NES, SNES, N64, Gamecube, Wii and Wii-U. I think the the colossal commercial failure of the Wii-U was the last straw for Iwata, and that was the genesis behind their hybrid angle. Marketing it as a home console that could be taken out of the house instead of a handheld that could be played on the television was a genius diversion, and it worked. 

No, hybrid does not technically mean it's not a home console. Unless that also means that it is not a handheld. And claiming that the Switch is neither a handheld nor a home console obviously makes no sense. It has to be at least one, and I see no reason why it can't be both.

I'll ask the question in a different way. What is the Switch lacking that would have to be added to consider it a home console?

There was a thread a while ago arguing over semantics whether the Switch was a portable, home console or both and went nowhere. The Switch is designed to be portable console that can be docked. Not too dissimilar to this prototype without the detachable controllers.

For the second that would obviously be a home console. It would not work outside of plugging into a external display - TV, monitor. And not designed to be portable device.

For popularity and sales, portable consoles were more successful for Nintendo so it made sense in going in this direction. Nintendo home consoles alone could not compete with competitors though their portable ones remain uncontested. Having a console that could do both was a brilliant move from Nintendo and has paid dividends after not-so great 8th generation consoles from the big N. Having a strange hybrid between them with Project Indy would is like what Sony half attempted with the PSP/Vita with external adapters to plug into TV. However, it was clunky.. with no dock and cable and connecting to external controllers was not a user friendly experience.

Dependence from external elements to function (continous electric current, a screen, a controller...). Since the Switch has all of that built in (it has a screen, it has a rechargeable battery, it has a controller), it is built as a portable device that can be taken away from the house and played everywhere. Home consoles cannot do that. Therefore, the Switch is a portable console that happens to be able to connect to a TV.

Is a laptop a desktop computer because you can put it on your desktop and use it as a desktop computer? Is and iPad a home device because you can project the image into a TV or a monitor?