Makes sense as a pure baseline New 2DS replacement, with the added bonus of an existing games library.
Whether the lack of TV out was driven by hardware/cost issues, or was strategic, it's the right business decision. If this had TV out it would cannibalise standard Switch sales, leaving no USP for that device.
A likely £200 or close in the UK seems expensive for an entry device but that's because of the worsening economy/exchange rate. This is how Nintendo's post 2000 handhelds have launched to the market (jeez that was torture towards the end... don't shoot me if I've missed any!) :
2001 GBA $100 / £80
2003 GBA SP $100 / £90
2005 GB Micro $100 / £70
2005 DS $150 / £130
2006 DS lite $130 / £100
2009 DSi $170 / £150
2010 DSi XL $190 / £160
2011 3DS $250 / £230
2012 3DS XL $200 / £180
2013 2DS $130 / £110
2015 New 3DS $180 / £150
2015 New 3DS XL $200 / £170
2017 2DS XL $150 / £130
2017 Switch $300 / £280
2019 Switch lite $200 / ?