Great, well thought out post, but I'm not sure even Sony could design an affordable handheld that could handle PS4 games in the foreseeable future. And then, what happens to your physical disc-based games? They learned their lesson with the PSPGo that digital only systems have major problems at retail.
Yeah there are definitely a lot of things that would have to be given a lot of thought. It's an idea that might not be ready for prime time. Well it isn't really viable now at all.
Perhaps a device like that would make more sense when/if we get to a point where the likes of PS Now is how games are distributed. But that time isn't coming anytime soon.
I guess ultimately for me personally the reason handhelds have never really been my first choice is because they've not provided the type of games I want to play.
I know there's the argument that states that there's been historical proof that handhelds focused on console experiences on the go have failed, but for me personally those handhelds have failed with me as a consumer because the experiences were compromised, and not actually as good as the console counterparts.
The other argument states that handhelds are really only suited to the pick up and play games. But I feel those types of games are better suited to a device like a phone, it's a device that's with you all the time, and ideal for a 5 minute blast in a waiting room. Having to carry a handheld to game in those circumstances is a chore.
The logic is similar to web browsing, if I need to quickly google something, or send a quick email a phone fills that niche, if I need to do some more heavy lifting I'd need a tablet/laptop to be more comfortable, but they're not a device I'd carry around with me "just incase".
The switch is for me the dream of having the same games on a portable device that I could play in a more traditional couch/tv setting. It's what I've always wanted, and what I hoped the PSP and Vita would be....I won't carry the switch with me just incase I fancy gaming for 5 minutes, but it will be the device I bring with me on a long journey/flight etc/