Lazy developers also had a tendency to get punished with lower sales. But sure that can happen, there are pros and cons to that approach, but from a business POV, I think there are more pros than cons.
50% of Nintendo's hardware transitions have been failures/dissapointments, you can't bank the entire company on a traditional Switch 2 going swimmingly well. What's your back up plan if it doesn't? The better plan is to not put your company in that position to begin with and change to something that's far less risky of a hardware model. PC has been doing something else for decades and its worked fine there, Apple is making more money than all three console makers with their model.
There are pro-consumer arguments for an Apple/Steam-PC like model too, I think the freedom of being able to upgrade whenever you want and having games available right from day 1 instead of having to wait months/years for the library to build up is a significant pro.
They can maintain hardware momentum with hardware revisions like they did with the DS. It doesn't need to be a full-on Switch 1.5 with a big power boost, it could just be a Switch Deluxe with a bigger and higher quality screen. That way you avoid consumer interest waning until it's time for a proper successor.
Bet with Liquidlaser: I say PS5 and Xbox Series will sell more than 56 million combined by the end of 2023.