You don't have to "reset to zero" with a new generation. Just maintain backwards compatibility and the whole OG Switch library carries over to the successor.
That doesn't mean shit from a business POV though, the Wii U had backwards compatibility with the Wii and who showed up to support them for that? *crickets*. Every time you do the old fashion hardware change you leave yourself incredibly vulnerable and consumer loyalty is fickle as hell. One minute they love you, they next minute they love something else.
If I'm Nintendo I'm ditching that whole style of hardware upgrades entirely, it's far too risky especially now that you have no fall back hardware to go back on (imagine where Nintendo would be if Wii U or GameCube happened and there's no 3DS or GBA).
I'm not risking my entire company on a product transition like that, no way in hell. Nintendo is not MS or Sony either where they have 50 other divisions that can make money if Playstation or XBox doesn't work out.
The setup PC has is much more sensible for where Nintendo is today, it's ultimately better for the consumer and will be better for Nintendo too. People don't complain because that's simply the way it is and always has been, there are no "generations" in PC gaming. That can work for Switch IMO.