Switch's versatility is impressive. IMO it's proving itself to be an attractive item for even core players and will coexist fine with the "big box" consoles. As a matter of fact I think as the Switch line gains more power, the PS5 and what not is what will look less impressive because it's just another stationary console.
Switch lets you play hardcore, epic games anywhere you want, when you want, how you want. My brother just casually pulled out some Zelda to play yesterday while we were waiting for a movie to start at the movie theater ... that's just a cool ability, being able to do that.
Eventually there will be a Switch that can run PS4 graphics, and after that IMO the need for better and better graphics lessen, even a lot of core players are going to say "this looks good enough".
I think with the Switch hardware form factor actually Nintendo's found its comfort zone as a hardware maker ... making home only Nintendo consoles wasn't going to work well for Nintendo, but a portable console plays to their strengths.
Essay Pro