In a word,
the screen is too low of a resolution, so it will look terrible and the machine is way underpowered, we're talking about a machine with a fraction of the power of the PS4
Sony and others throw most of their console specs at luxurious visual flourises. Graphically the switch could provide tons of aesthetically pleasing 90/120fps, 1080p VR experiences if they wanted to. If anyone could bring VR into the mainstream it would be Nintendo, they've always had a strong understand of functionality and fun over just boasting about specs.
Wii games running at 1080p