The hybrid design is probably the way they're going to go. I'd love a higher spec one that isn't though, even if it's just a pipe dream. The ideal set-up for me personally would be:
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"New Switch Lite" - Undockable, permanently handheld, like the Switch Lite but with better hardware.
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"New Switch" - Dockable, again like the Switch, but better hardware.
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"New Switch Pro" - Undockable, permanently docked, better hardware than the New Switch.
New Switch obviously not the best name, but my creativity is bankrupt. At least it's not Switch U.
There's been lots of rumours regarding the existence and the chips and etc. The only thing official before this was "We have no plans to release new hardware before the next fiscal year.", i.e. April 2024 is the earliest we could see it.
Some people also see the whole "Nintendo telling the Mario + Rabbids crew they should have waited for the next console for the sequel" thing to mean a new console is somewhat near. I don't believe that's indicative of that though.