I don't think a lot of people really consider them failures from a financial perspective. A lot of PS3 exclusives sold in the 1.5-3 million range, and had cutting edge high end budgets. I do think that there's a general sentiment that these games are failures from the perspective of launching a new IP that can becoming a long lasting franchise, because well ... the signs are already there that that is in fact the case. Arms has had so little fanservice despite the fact that it was one of Switch's major releases in 2017. It shipped 1 million in two weeks but it's last shipment number was just a little over 2 million despite having an entire year, a holiday season, and a month or two to spare.
As for 1+2 Switch .... that game will probably end up having decent legs because it's a party title that people might get when they pick up a Switch. But the general idea that 1+2 Switch is a failure in terms of starting a promising new series is A ) It doesn't cater to gamers, so there's a lot of forum echo chamber B ) It didn't do Wii Sports numbers, so in the eyes of many there was no reason for Nintendo to even bother and C ) Nintendo abandoned Wii-brand games and Nintendoland, at this point Nintendo abandoning gimmick games is just something that happens. It was meant to show what kind of ridiculous fun you could have day one, there's not a lot to get out of it beyond that point.
I don't really think the problem is that these games aren't doing Mario or Splatoon numbers ... that's just generalizing too much and is over the top. But there's definitely a reason why people are more positive about other niche franchises like Pikmin or Metroid than they are Arms or 1+2 Switch.
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