Jeter had what, 3,400 hits? He would be a first ballot HOFer at any position, and from a baseball standpoint he should have moved to 3rd when A-Roid came to town.
Redskins did that with Brandon Scherff, he was a tackle whom the Skins took 5th overall and turned into an All-Pro guard.
But seriously, there is a difference between capable of playing SS and having the best possible alignment for the team placing you at SS. The team hypothetically putting him at 2B when he comes up doesn't negate his ability to play SS. Lots of good defenders play both positions (e.g., Tommy Edman, Andres Gimenez, Taylor Walls).
If Ortiz or Henderson has established himself at SS when Holliday comes up, 2B should be on the table.
And a lot is going to happen between now and the 2031 offseason when he will likely be a FA. Speculating on extending him and what maximizes the team's chances of doing that when he is 19 and in Bowie is very silly.