That is so small, I'd be surprised if they can fit everything in there, still have decent battery power and for it to not have thermal throttling.
I'll repost what I said in that Superdata thread.
First, the consequences of what might become a barebones Switch making it the equivalent of the Vita TV. Removing features from the Vita to create the Vita TV such as the touchscreen caused a large number of games to be incompatible. The Vita TV was cheaper but was not a good substitute for a Vita when you couldn't play all games available.
Hence, any attempts to remove features that people may like about the Switch to create a smaller or cheaper Switch may become undesirable.
If you remove the kickstand? No tabletop mode.
If you remove the Joy-Cons? No local multiplayer on the go.
Etc etc.
For now, it's more preferable to see how cheap the current Switch can become. It uses a stock Tegra X1 SoC, USB-C port and adapter etc. Those things will get cheaper over time including USB-C as it is becoming the new standard.
Next, I'll repost about whether people actually prefer something to be cheaper as opposed to being smaller.
We know that Nintendo can make a cheaper Switch,
what we don't know is if the audience wants a smaller Switch rather than a cheaper Switch.
Referencing Nintendo's worldwide LTD shipment numbers for 3DS Hardware:
There are 19.64 million (old)3DS XL units LTD although that is very likely being discontinued considering how low shipments were recently.
7.1 million 2DS units.
2.49 million New 3DS units.
9.82 million New 3DS XL units.
Total LTD is 65.3 million currently.
The 2DS has been around for longer than the New 3DS/New 3DS XL and has sold the most in their Other territories which excludes Japan and The Americas.
This was pretty apparent when I saw Fire Emblem Echoes Shadows of Valentia on the recent Nintendo Direct for Europe, they showed only the 2DS model and the New 3DS XL model.
What I am getting at is that the 2DS is bigger and bulkier than a New 3DS but it is cheaper.
I don't think people care too much about wanting a small size as opposed to it being cheap. We can see that even the bigger New 3DS XL greatly outsells New 3DS and, in Japan there is a 3.6:1 ratio of New 3DS XL to New 3DS units using LTD numbers.
If anyone could buy what the current Switch is but cheaper, they would definitely do that. Making it smaller will of course make it cheaper but most people don't care about making a portable smaller than what it is as opposed to just getting it cheaper.
Now, the Switch Mini could have no Joy-Cons to reduce cost, no Grip, no Dock, no HDMI cable, smaller screen, smaller battery, mono speaker instead of stereo like 2DS etc.
The question is how barebones can it be before it will start getting affected by sales figures due to lack of desirability? Will it be more like the 2DS sales figures above? Or the New 3DS?
The handheld market is declining due to smartphones. The Switch has some neat features that a dedicated handheld or a dedicated stationary console can't do.
The reason Nintendo hasn't released a new handheld already when the 3DS is at the end of its life is that they haven't figured out how to deal with the declining handheld market due to smartphones.
That's​ why the went third party and are releasing smartphone games, they couldn't figure it out. A barebones Switch Mini would probably just provide them extra sales but would not be the preferred​ unit by consumers for the Switch. There are features on there that aren't as unnecessary as the 3D screen on the 3DS.