The problem to me isn't so much that their hardware has been underpowered, that's been a thing for like 20 years at this point, since the release of the gamecube or therabouts. The problem to me is that they've been incredibly unambitious this generation in terms of making their console something that has an appealing form factor compared to it's potential competitors, not just in the ps5 and whatever the new xbox is, but with the mobile gaming handhelds like the steam deck, which can apparently pretty easily emulate most of the switch's library and also serve a bunch of other functions.

I know that the hardcore gaming audience really disliked the motion controls as a central gimmick of the wii, but I really thought it was fun, pretty decent, and that now, with the switch, the technology has actually become good and not a flickery unstable half-mess. The only motion control stuff I can think of is mario party, 1-2 switch, which is old and nobody played, and some aiming mechanics in other games like splatoon or the new zeldas. For a console that is as easily positioned for casual multiplayer as it is, they've been consistently very iffy with their output on that front. Combine this with a a resurgence of shitty management practices like their litigiousness, charging more for subscription based access to their older games library, charging for online play, and it's kind of made me reticent to engage with the switch that I have and reluctant to engage with any new console they might put out.

I'm also going to keep banging the drum that the switch is the most optimally positioned console for playing all of nintendo's library. If they had wireless connectivity to the dock, probably the hardware wouldn't be good enough to run it, but you could theoretically run both DS games and Wii U games. Obviously, the console's already suited well for Wii games, and the rest of their backcatalogue before that. With only their recent library they could provide a pretty good alternative to actual emulation alternatives, but instead it seems they'd rather take a much less effective route.

Also they could probably make it a pretty easy VR experience as they've shown with the cardboard shit they had, but fuck that I guess, easier just to do absolutely nothing.