I explained in the OP that the handheld market is turning blue entirely due to circumstance, not because Nintendo figured out anything special.
Switch's game library is in its infancy, so the option to make something like Switch Sports is still open. It's possible that Nintendo is deliberately saving it for later to avoid a perception among third party developers that is similar to Wii, a console that was brushed off as a casual machine devoid of an audience that would buy real games.
Nothing in the OP contradicts your questions. From Nintendo's context, which is what is being discussed here, it's not possible to become number one by doing the same as PlayStation. That's why they need to take risks if they aren't content with being second or third.
They need to take risks because Sony has beaten them like a red headed step child in the console business for the better part of two straight decades. Lets give some credit where credit is due.
They are forced into taking risks because they have been beaten that badly.
To be honest, which Nintendo games on the last 10 years are even industry leading? EAD Tokyo is doing great work and they deserve props, the two Mario Galaxy games are probably the best Nintendo games of the last decade, Splatoon was a bold move, but aside from that ... there's a lot of good games, but not neccessarily industry defining stuff any more. Skyward Sword was not the best quest/adventure game for example.
This is not like the 90s where basically every year Nintendo either had the Game of the Year or a big candidate for GOTY (1990- Mario 3, 1991 - Super Mario World, 1992 - Super Mario Kart or Zelda: LttP, 1993 - Star Fox, 1994 - DKC or Super Metroid, 1995 - Yoshi's Island or Earthbound, 1996 - Mario 64, 1997 - GoldenEye, 1998 - Zelda: OoT, 1999 - kinda of a poor year, 2000 - Zelda: Majora's Mask or Perfect Dark), in those days Nintendo along with Rare were in a top tier class, nowadays they're still good, but they're not driving/influencing the industry anywhere near the same level.
So the idea that they know "fun" and no one else in the industry does is something I just don't buy.