Adjusted for inflation, Switch costs the same as launch as Wii (in US)

[Mummelmann]

Wii had a good pack-in title while Switch offers a similar title for demonstrating for 50$, had immense mass appeal due to its concept and inflation proceeds without peoples sense of perceived value following. The Switch also comes without an IP port, apparently has no proper functionality as a tablet besides games and still offers poor online in an era where this is a lot more important than it was in 2006. In addition, the Switch, with its tablet form factor, will inevitably be compared to devices that multitask a lot better and serve as portals into multimedia and social media and no such devices existed that mimicked the Wii, or rather that the Wii mimicked, it was quite unique.
One example of perception of cost and price; in my home nation, gas has never been cheaper relative to median income than it has been in the past decade, but the price has risen annually and the whining and protests have risen with them, same goes for prices for groceries.

People don't adjust for inflation with perceived value, simple as that. Products of their time will be judged on the premises of contemporary products and affiliation and overall market movements. Heck; my first friend with a DVD player paid about 1500$ for it in the 90's, which was acceptable for an enthusiast at the time but not mainstream consumers.

If the mainstream market fails to see the perceived value, or rather Nintendo fails to impress it upon them, the price will be regarded as too high.
I bought a phone during christmas, a Huawei Mate 9 Pro, it costs a little less than an iPhone 7 or similar Samsung Galaxy, yet many insist I paid way too much for it due to its lower perceived value since it wasn't made by a hip manufacturer.

Short version; OP's argument is completely invalid, perceived value doesn't fit into your frame of argument.

PS: My new phone kicks the ass of both iPhone 7 and Samsung Galaxy S7 Edge...