Of Course, we dont know future, but everything looks very bright and positive for Switch, Switch is and its will be in very unique position on market despite PS5/XB2. Buy time PS5/XB2 arive on market Switch will most likely have price point of $150-250 with several revisions and very strong available lineup, while PS5/XB2 will be at minimum $400+ home consoles. Talking about shrinked handheld market, Switch is selling better than 3DS in same time period with difference that in that period 3DS had huge price drop and one revision (3DS after two years was at around 30m while after same time period will be at 35m+). Also Switch like hybrid device can attract some of smartphone/tablet gamers because it could be seen like bridge from smartphone/tablet gamers to console gamers, like I wrote Switch has very unique position, not just compared to PS4/XB1 or PS5/XB2 but to 3DS also.
I already told you what will most likely will happen, mulitply revisions and price point of Switch platform, very strong Nintendo support with all Nintedo IPs on one platform, longer than usual Nintendo support, and plenty of 3rd party support (A-AA games, last gen games, Indies, and few big current gen games).
What's really promising on Switch right now is there really appears to be a market for Mature AAA ports. It blows me away that a port of Dark Souls on Switch which came later than the other Dark Souls ports is selling better than the day and date release of Starlink heavily featuring a Nintendo mascot. Its pretty impressive. Dark Souls Remastered and LA Noire Remastered are doing better on Switch than on Xbox One. When they eventually come out with a more powerful Switch I think you'll see a lot more content getting ported to Switch.