Just watched a review of the switch lite on youtube which said the dpad is a bit rubbish finding diagonals- bit of a shame if true.
Sadly, this does in fact seem to be the case, as I've seen a tear down that shows the issue, and it's real based on the amount of fighting game complaints. LOL
The contact points under the membrane seem to be spaced further away from each other as a point of design, so it's not great for fighting, but perfect for platforming and 4 directional games like Tetris 99. While I love my fighting games, it's not something I ever do seriously on a handheld, as I'm a 6 button snob. I made it work back on the SNES, but have long since gave up after that, as SF4 on the 3DS was AMAZING, but playing in that form just never clicked for me.
So if givien the option, the way the D-Pad is currently, it would be my preferred option between the two. Of course having something that functioned under all situations would have been ideal, but with the "N" of today, you have to take what you can get, when you can get it. Then, if I actually ever decide to play more competitively, I can always sync something to the Lite and prop it up and play that way. I't's not ideal, but there are many proper d-pad alternatives out there, that can be used with either NS, no problems.
Chris