I think its not inherently a bad idea. Easier execution would use the same components, just put them - motherboard, dock and psu in a new small box, and keep the performance and all mechanics of a docked switch, so there is no need to change the games or system. It would be a permanently docked switch for cheaper. I dont see why not, pro-controller already exists, it would definitely find buyers if the price is right...
This is a REALLY bad idea I'm afraid. It introduces another SKU for developers to work on and immediately kills or greatly limits touchscreen-first games.
It also kills the primary USP of the console - being playable in many life scenarios.
This is a case of a gamer primarily only thinking of their own personal circumstances without considering other factors and also being over obsessed with power and numbers over gameplay.
With a list price of $449, the Nintendo Switch 2 is more expensive than the Steam Deck, and could soon become even more expensive due to the DRAM crisis. With a version of the Nintendo Switch 2 that only functions as a home console, Nintendo could offer more performance at a lower price.