Overall it seems like a good deal, I'm not personally interested as I already have one and use it nearly equally in handheld and docked mode, but if someone is looking forward to only use it as a portable then I think it makes a lot of sense for that price, that IIRC that's more or less the same launch price of the 3DS hardware revisions.
As for choosing between this and the original, this is just optimized for portable gaming at the expense of the other features, it should be more comfortable being smaller and lighter and the battery should last more, it ends up filling a very different target (anyone who isn't interested in the hybrid console features, or in games not playable in handheld mode - IIRC that's only 1-2 Switch and Super Mario Party though, imho definitely not essential titles); of course I'd say it's overall inferior but the lower price makes up for it, like it was with the 2DS. As expected this is the full successor to the 3DS, and it makes sense for it to come out now that SwSh and AC are due to be out soon. I don't know about the Pro version, it was rumoured a lot less and imho with only this one being announced it's going to take at least one more year or maybe more to see one, if we are going to have a Switch Pro and not a retrocompatible Switch 2 anyway.
My only doubt after seeing that is about the sticks, surely they're more comfortable than a circle pad, but I wouldn't ever store that in a bag as shown in the reveal video for fear of breaking them (not that I think storing any expensive piece of hardware without a case is a good idea anyway).