I think you're absolutely right. Personally I see the next big switch will be to handhelds. The ability to just pick my switch up and take it wherever I'm going is the primary reason I own it. They will do the premium one with the screen and controls and the "lite" edition will need a tv.

I wouldnt be surprised if MS and Sony eventually step out of the hardware game either entirely or mostly and simply licence out a "Playstation phase # compatable" certification to others (that you need a PSN subscription to use) so you know that that Steam Deck/MSI whatever/Asus handheld will play anything from the X generation of playstation titles or older available.