Nintendo is no longer a home console company...

[b00moscone]

Just for your first point, it's not that Nintendo can't compete with Sony or Microsoft, they just can't outsell them if they make a home console a la X1/PS4, they're competing with something different.

Also, in-terms of power you can look at it from a completely different point of view. Before the Switch, the most powerful handheld was the Vita. The Switch is capable of running much much more graphically-demanding games (See Breath of the Wild/Mario Odyssey), so if the Switch is 1/3rd or so of the X1 then surely it's closer to a home console? Or what people do/should call it: A hybrid.