True, but the used sales would still contribute to software sales if they bought digital.
As for the popularity. What may be true for switch is not true for playstation.
The $700 ps5 pro is the least popular, while the $500 Ps5 is the most.
According to the over 100k dislikes on the reveal video.
3.86 million original Switch consoles were sold during the 2024 fiscal year, with the updated OLED Switch model selling 9.32 million units and the compact Nintendo Switch Lite model selling
2.52 million during the same time frame.
Nintendo Reveals Sales Numbers
So the Switch lite still sold 2.5million units. Not far off from the base. You are right about the cheapest switch being least popular.
Though with the cost-of-living crisis you would think switch lite sales would increase.