It's actually worse than that.
A game may start life out at 960x540 resolution... The Switch will upscale that to 1920x1080 in docked mode... And then the Television will take that input and upscale it again to 3840x2160.

It's far to much upscaling and you get reduced image quality because of it.

It doesn't have a dedicated chipset. It's part of the main chipset.
AMD has a dedicated hardware block in it's GPU's that handles such tasks.

4k output has got absolutely nothing to do with running games at 4k.

I'm waiting for Fire Emblem before I buy a Switch. I hope the console revision is released close to Fire Emblem's release, as I'd much rather buy an updated Switch. A bigger screen and better wifi are on the top of my list!

I agree with the points in the video. Perhaps the updated chip would be at 12nm and would improve battery life.

In my view people worry way too much about a Pro Switch. Sure, it would be nice to have XBox 1X specs on a handheld but there's always going to be a technical gap between a dedicated console and a handheld and that gap is smaller now than ever.

Most of us are going use replaceable cards for storage anyway. (Sure, double storage space if you can do it essentially for free - more is better - but it doesn't really matter.) It's the same with the kickstand: fine, improve it if you want but, anyone using tabletop mode enough to care is probably going to use a further accessory irrespective.

Greater battery life would be nice. Also a larger screen, but it's hardly essential: the Switch has a nice screen. The main reason for adding it would be to give a visible upgrade to give people an excuse to buy the new unit, and that's reason enough.

Better wi-fi would be good, but Nintendo could silently upgrade that without issuing a new unit. On the other hand, Bluetooth headset support would be very valuable: onboard voicechat should definitely be prioritised going forward. I'm also surprised that Digital Foundry didn't address issues with the USB-C implementation ... the next Switch should have some sort of hardware fix so that it has better compatibiliy with third-party accessories, or at least can't be fried by properly designed ones.

The dock could use a rethink, but you don't have to update the entire console for that, just release a Pro dock with an integral internet port and (if this is even possible?) a 4K upscaling chip. I wouldn't buy it, very few would. After all, an ethernet adaptor only costs $10 and not everyone wants to use ethernet. But if they sold a Pro Dock and a first-party “docking stand” (which, going by third-party attempts) would be a lot cheaper to produce) then they could drop the dock from the retail package and give themselves more flexibility on margins.

If we're daydreaming about upgrades, I'd like to see full 3DS emulation and a 3DS card slot included on the Pro Switch.

Tegra X1 already supports 4k output. Meaning no separate chip necessary.

Nintendo chose to limit output to 1080P because they limited the HDMI output to 1.4.

There might need to be a new Switch Revision if Nintendo's USB implementation cannot provide the appropriate bandwidth with aggressive encoding.

Some can be done without rebranding it as a new revision.
If they decided to go silent, not changing the shape o product or price, still would be nice to have the 4K output support (although is unlikely) and Better WiFi module would be a must (however, it wont solve the problem because you will still play with people with switches with the old WiFi).

But if they go with rebranding (switch pro, switch+, switch XL), with new shape, dock, pricing point, we could go bolder:
Sub 14nm chips to better efficiency, that would allow to reengineering the internal parts to not overheat when playing with dock clock in HH mode; more battery life (well, user could select between performance and battery). Yet, 1080p bigger screen, new kickstand, blutooth, more storage, better dock.

But if they go like this, I cannot see why not a mini switch/switch boy using the new chips. limit the clock to HH mode clock, attached controllers, portable dock/cable to streams to tv and done. A more HH friendly device and lower price point could reach new consumers, specially in japan.

who quoted me? i looked through all comments and found nothing but i got a notification o.O

At that moment I would have given it a 10% chance of happening but with still no Nintendo Direct I raise it up to 20%

Short term it will hurt the Switch sales but long term it will help especially if it include's a price cut for the 'old' version that starts the next day after the announcement.

End of january direct => Announce the switch revision for a release Early march 2019.

It isn't that crazy they did it with the DS/DS lite

DS lite was announced end of january with a release early march.

The DS sales fell of a cliff in February to only selling 130k for a whole month in Japan. (that january it was around 300K)

But in March with DS lite included it sold 550Kish in Japan but their was a huge shortage and they sold 1 million of them in April (but still sold out). 

That year DS sold on average 700K a month = 8.3 million in Japan.

I'll just quote my comment on the video itself: "If they're going to scale Switch games internally, they'll need to improve the quality of the upscale. I've seen success letting other devices in my setup handle the upscaling vs. the Switch itself (admittedly I'm working with a 1080p setup). One example: https://youtu.be/IWaORkp1t4Q "