Besides, the convenience of TouchID is largely due to it being integrated in the home button, you’d lose that too.
You can still unlock a phone via its PIN if you don't want to pick it up. (Edit: I have not owned an iPhone since the original. Does the iPhone not provide a PIN option when Touch ID is enabled?)
I'm not an UX designer, but I would optimize for the nominal case, rather than choosing a solution that is sub-optimal 90% of the time, but works better for the remaining 10%.
Seems like a perfectly normal use-case to me. I have it lying on my desk when I'm at work, which is 40 hours a week. I don't want to have to pick up my phone or enter a PIN every time I want to check an incoming iMessage, news alert, etc.
Fingerprint on the back is a major UX issue. I hope FaceID would work fine at an angle.