Depends on the binning, if they have lots of TU117 to throw away then they'd better sell them as this instead not to mention (manufacturing) prices must've come down a lot for this old node.
They don't necessarily need bad chips to sell a lower end product, they can just fuse off perfectly fine chips to fill up shelf space and the product lineup (this is a pretty normal practice as stupid as it sounds). They also probably have left over stuff from the mobile MX550 which doesn't make much sense even for the marketing value of an nvidia sticker on the laptop.
They have competition from AMD and if leaks are to be believed will have strong competion from Intel at this price point, doesn't make sense to design a new chip for the lower end of the market when they have a well established one ready to fill the gap. They could also discount the 1650 which would be a lot more appealing, I guess it will all depend on how the market moves.
They are already selling an even more cutdown version of this as the Quadro T400 and the slighly better Quadro T600, search for benchmarks on those cards for a closer aproximation of performance offered, this will be in the middle.