CNET:
"We believe the two systems will complement each other and coexist in the market," Nintendo of America president Doug Bowser said.
the 5.5-inch screen makes the 720-pixel resolution look a bit sharper than the 6.2-inch Switch.
You could play games like 1-2 Switch or Just Dance on the Switch Lite. You'd just have to pair Joy-Con controllers to that little 5.5 inch screen.
The Switch Lite uses a more efficient processor that enables smaller heat vents on top of the system
https://www.cnet.com/news/nintendo-switch-lite-arrives-for-200-and-here-is-how-it-plays/