There's something a bit incongruous with this model. The update is almost entirely for the benefit of handheld players, with an improved screen and speakers. I believe Nintendo's own stats have shown that the player base is pretty evenly split between mostly handheld, mostly docked, and an even use of both. I read that statistic a long time ago, before the Switch Lite, so maybe those numbers have changed. But roughly 2/3 of the Switch audience is using handheld mode a lot, so focusing on that makes sense.
But if this particular SKU is geared towards handheld play, why include the upgraded dock with ethernet? Do they anticipate more cloud versions of games, or some other reason to need more stable internet?
Also, 2/3 of the Switch audience is also using the system in docked mode substantially. Why hasn't Nintendo released a Switch model without the screen, speakers or battery? If the Switch Lite can't dock, the Switchcast can't go portable. It seems a fair trade that could be relatively cheap to produce, and they could play to strengths there by including more native storage or connecting to an external hard drive.