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JRPGfan said:

So say a switch 3rd party multi plat runs 800p docked.... does it run like 540p in handheld mode?
Is that how this is to be understood? ei. handheld mode = about 66% of docked resolution?

Their probably aiming for 1080p docked, 720p handheld, for first party nitnendo games.

Yeah, that's how you're supposed to understand it, it seems. 1080p sounds really high for such a weak console, but it could work out with graphically simpler games such as Nintendo's (they're usually not very complex graphically). Mind you, that's just the default settings, and devs are free to do what they want.