Does Nintendo Switch Lite support amiibo?

That is 100% correct. While the Switch Lite does away with a lot of other features from the regular Switch, such as the HD Rumble and IR Motion Camera support in the controller or TV output, you'll still be able to use amiibo figurines. It doesn't matter whether they're old or new either; if it's an amiibo, then it's most likely compatible with the Switch Lite.

Just like the normal Switch, all you need to do is tap an amiibo figure on top of the right control stick. If you're playing a game that has amiibo support, the amiibo will interact with the game as originally intended.

The better question is, what isn't great about amiibo? After all, amiibo are Nintendo's toys-to-life platform. They are plastic figurine toys that contain wireless NFC technology inside, allowing it to communicate with your Nintendo Switch or Nintendo Switch Lite console.

The amiibo are completely optional and usually give you bonuses or extras in certain games. For example, in The Legend of Zelda: Link's Awakening, you can use the new Link amiibo to unlock a new feature in the Dungeon Maker mode. The game will also work with all other Zelda amiibo.

Not every game features support for amiibo. Some titles give specific bonuses when you use amiibo that are associated with the game series, such as The Legend of Zelda: Breath of the Wild and Zelda amiibo, or Diablo 3 with the Treasure Goblin amiibo. Some games will grant random, generic bonuses if you use amiibo that are from other game series, which is still better than nothing.

If you are curious about which amiibo works with what games, make sure to take a look at Nintendo's amiibo compatibility chart.