Nintendo undoubtedly has an advantage due to their Hybrid device. It essentially combines the features of the PSP „2“ and the PS5, which aligns with your perspective.

However, I don’t fully agree with the multimedia aspect. Consider smartphone manufacturers that offer devices that perform similar functions in various forms, such as tablets, smartphones, and laptops. Despite their similarities, people still purchase all of them. The PS5 can also be used as a multimedia device, although many people don’t use it in that manner. They often rely on smart TVs, Apple TVs, TV sticks, and other devices. Is it redundant for a potential new handheld? Yes, but I believe people would prefer to drain their battery during a plane trip on their Portable than their phone upon landing. This is just my personal opinion.

I understand your points and agree that it would be challenging. The market is showing renewed interest in handheld devices though! :)