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VAMatt said:

I'd like to offer an option number 4 - The Switch install base grows to such a point that third party publishers just cannot skip the system for business reasons.

TBQH, the only way this option is viable is if the market for both Playstation and XBox completely collapses.  Because even if the Switch sells 100 million units, if PS4 is also selling 100 million, then it still doesn't make a great deal of sense for most companies to go to the effort of creating gimped ports of major AAAs to try and fit them onto Switch. The only probable exception I can think of is Dragon Quest XII.  If Square Enix went to the trouble to create a 3DS version of XI that outsold PS4 (at retail, at least, then I can see them doing a Switch version alongside PS4/5. 

The more likely path is that PS/XB is the home of major AAAs, while Switch is the home of major AAs.  Basically, Final Fantasy on the former, Octopath Traveler on the latter.  If the Switch can't succeed long term on that path, then the Switch won't succeed long term.