ERA thinks all of their product ideas "make a ton of sense" with zero market research and based the opinions of an entirely niche audience that's not even remotely representative of Nintendo's target audience.
It's possible this will change over the Switch's lifetime, but its differentiating factor is exactly the fact that it's not just set-top boxed like the other two major players. Trying to compete in that segment is not a winning scenario for Nintendo. The Lite continues to differentiate itself by being a relatively powerful portable gaming system which Nintendo has always excelled with. Taking the concept in the other direction and stripping the switch of it's portability will not make for a good product except maybe for very few people in enthusiast circles who just refuse to accept that the Switch is portable device first.
It's possible this will change over the Switch's lifetime, but its differentiating factor is exactly the fact that it's not just set-top boxed like the other two major players. Trying to compete in that segment is not a winning scenario for Nintendo. The Lite continues to differentiate itself by being a relatively powerful portable gaming system which Nintendo has always excelled with. Taking the concept in the other direction and stripping the switch of it's portability will not make for a good product except maybe for very few people in enthusiast circles who just refuse to accept that the Switch is portable device first.