Yeah, I had the same thought. However, the Switch actually makes that convenient, by design. I would play my PSP on TV all the time. It sucked. Getting the screen full size required your TV to have that option (and crappy cheap TVs didn't). Fumbling with the wires was annoying. It didnt have a stand.
The Switch has the same feature, you're right. But its designed (and marketed) around it. That's the difference.
Too small because of underscan? I'm baffled why with HDMI and the 1080p standard it's now the other way round - I need to disable overscan to get the full image and games still have to prompt me to choose a safe area to display UI elements.
I know this counts as an accessory that bridges two devices rather than a complete device in its own right but: https://en.wikipedia.org/wiki/Super_Game_Boy. The Switch, as neat as it is, isn't without precedent.