How many devices do you actually want to carry around?
The consumer value proposition is greater if people can watch media on the same device.
I'm not convinced that's true at all. At this point most people have a plethora of devices that will get the exact same Netflix content on their TV. My TV has like 4 things connected to it right now that will (TV itself, ps4, chromecast, fire stick).
Yeah, but one of the main appeals of Switch is how portable it is. And when I carry around a device I expect it to not only provide games, but content consumption as well. Otherwise I can carry an ordinary tablet - it might be not ideal for games, but as a multipurpose device it would be superior.
Everybody is already carrying a much-more-multipurpose device with them everywhere they go (smartphone). Carrying around the sort-of-portable bit of the switch doesn't seem that much more convenient than having a laptop. Doesn't fit in your pocket.
Actually usable and highly responsive SmartTV for free :).