[Patent] The Switch could rival the Oculus rift, if done right by Nintendo.

[Pemalite]

Depends on the Panel. If it's Pentile based you need a higher resolution to compensate due to how the subpixels are arranged.
720P will look terrible regardless of how you cut the cake though.

Besides, pretty sure the Switch base unit lacks the proper sensors for things like motion/tracking, you need the Joy Cons for that, which adds to the weight and bulk of a "VR" Switch.