There isn't any confusion, you're just backpedaling on this. Nintendo has shown no indicator of doing what MS is doing right now. That's it.

There is no back pedaling at all.  What I said in my edit is nothing more than a shorter and more to the point version of my OP.

Shiken,

Okay now I think I understand what you really meant.

Basically in your initial post you should have left out the main paragraph, where you describe the meat of your idea, and replace it with this:

"Future generations of Nintendo systems will continue the hybrid concept and Switch branding and be BC and Nintendo wont change their online/eshop infrastructure so as to keep all previous gen digital games in the eshop for future gens thanks to BC."

That is what you meant, not what you said (whether you admit it or not). You made it all confusing by talking about no new generations and simply upgrading the Switch instead and older Switches eventually just wouldn't be able handle newer games so they'd be discontinued. Which apparently is not what you meant at all, and that is the part people are disagreeing with you on. As rolstoppable just commented, you got confused on the different between a family of the same system and using the same branding, and I think you then confused yourself but ran with the idea, so now you're saying you meant something different than what you posted.

In summary: BC + prev gen digital games stay in eshop for future gens, maintain hybrid concept and Switch branding.

The only one of those I'm not sure they will do is keeping all games from previous gens in the eshop, mostly just due to clutter, though it'd be awesome if they did. And also I wouldn't assume this will be done for more than just the next gen because who knows where tech will be in 9-10 years when a Switch 3 would be coming out. Maybe by then it'll just be a VR pair of glasses that streams games using 6g delivered anywhere in the world by wifi satellites or something else totally different than a hybrid Switch branded system. But until there is game changing (pun intended!) tech innovation, or just gradual progress that results in totally different concepts being possible, yeah sure I think Nintendo will stick with Switch branded hybrid systems, could last 1 or maybe even 2 more generations.

I think a lot of confusion comes from my reference to the XBox Series X and MS is talking about just making XBox a family of devices moving forward rather than traditional generations.  People seem to have just ran with the idea that I was referring to incremental upgrades like the XBox One X, when Series X and what they are talking about with XBox is something different.  However much of what they say is also up in the air as we have yet to actually see it play out.  So yeah, I definitely botched my original post which is why I needed the edit but you seem to have the jist of it now.

As for the eshop, it would need a revamp for sure.  They would not have to get rid of what they have so much as add some organization and sub categories to help gamers find what they are looking for.  I hate their current layout, but that is another topic entirely.

When it comes to generations beyond the next following the same Switch family concept and way of upgrade, well that is where things get a bit bold.  However unless the Switch concept tanks in the future, I do not see them changing the core concept to something else moving forward before the eventual and inevitable take over of PC gaming.  That is why I said, "for as long as dedicated hardware remains relevant".  At that point, what Nintendo does is a mystery to me.  They may try a few one off things, but they will likely make their own game portal service similar to steam, but primarily for Nintendo games.  That is so fsr off however that it is not even worth talking about right now.