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Who thought most demanding AAA third party games were coming to the Switch? Please provide some examples of these conversations you were having. Some AAA third party titles will come to the Switch, but certainly not most of them. The Switch and Nintendo have been and will be successful regardless, as Nintendo can get by with their output alone now that the software teams are unified for one platform.

Anyway, I suspect the Switch will have better third party support than the Wii when all is said and done. That is good enough, especially when there is extra appeal to play the third party games on the Switch for the sake of it being a handheld.

Hardware is not a big issue for all except the most demanding titles anyway. Most games don't push the PS4/XBO to their limits and are designed to be scalable, unlike in the past. Hell, even the Wii U got a crappy version of Watchdogs and the Wii got CoD games. The question is whether or not it is worth the effort to port the games. Depending on the title, it might or might not be, but the gap between the Switch and PS4/XBO is much smaller than the gap between the Wii and 360/PS3 for reasons besides hardware specs, so if the Switch is successful some games will come.