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What is Nintendo doing?

Easy and short answer, they are making money.

More longer answer, NES Mini from start was just a holiday item and main point is to use it like marketing tool for Nintendo and Nintendo games, Nintendo confirmed they are planing same with SNES Mini (it will be shipped only until end of this year). DS XL will help 3DS family to continue to sell good regardles Switch. NES Mini, SNES Mini and DS LX manufacturing don't have anything with Switch manifictuaring and they dont effect on Switch manifictuaring in any way. Switch is selling good despite huge shortages (saying that is struggle with sales is nonsense) and soon they will have bigger shipments.

Also I need to say, that points in OP (that are whitout sense) sound like they are written by some kid that don't know anything about gaming market.