No, I'm not worried, partially for the reasons you outline in your post, particularly engine scalability and the plethora of indie support the system is receiving, which now takes the form of middle-tier retail releases as well as small scale digital releases. We're seeing a steady increase in support, there are now 20 Unreal Engine 4 games in development for Switch in Japan, for example.
I would be more worried if, at E3, Nintendo only announce a couple of new first party projects, rather than an interesting array of titles coming from mid-2017 until mid-2018. Ideally, Nintendo will release Pokemon Stars and Smash Bros on Switch this year, which, with Mario Odyssey, Splatoon 2, Zelda, and Mario Kart 8 Deluxe means Switch should host half a dozen major Nintendo titles which will sell 5 million or more life-time, and what's more, these titles will launch in the first 9 months the Switch is on the market. That will be vital in establishing momentum for Switch, which should see more third party support - primarily from indies and Japanese developers/publishers - emerge from 2018.
The combination of steady Nintendo releases, Japanese support and indie support should ensure Switch gets off to a decent start. The indie support is practically guaranteed at this point, but Japanese support will rest on Nintendo getting their software slate right, which is never a safe bet. However, given their recent Direct was a far cry from the early 2013 Wii U panic Direct (announcing multiple titles years from release), there are signs Nintendo's internal development is in a better place.
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