It means the Wii/DS era is pretty much over and even Nintendo knows it. The Switch demographics are largely adult core gamers, that's simply a fact.
Nintendo always appeals to a wide audience, the NES, SNES, N64, GCN were all more "friendly" entry points for a gamer than other systems, that's nothing new. The Wii/DS era of casual fad chasing is over though, Nintendo knows they can't win with that audience, those people don't care enough about video games to pay $200-$300 for a dedicated game system on top of a whopping $40-$60 a game when they can get their minor game cravings satisfied for free on their shiny new iPhone.
It's not 2007 anymore.
Not really, the Switch's audience is very broad, including people who only really played Smartphone games before. You're correct that Nintendo is no longer focusing on targeting people who never played games. But, that doesn't mean they're going to be some hardcore, gamer company because the reality is, they were never that to begin with. Instead, their goal is to appeal to smartphone gamers with their IP, along with ideas you can only find on Switch. The success of titles such as Pokemon Let's Go!, Super Mario Party, 1-2 Switch, and Nintendo Labo means that smartphone gamers will pay a premium for console games.
It may not be 2007 anymore, but the core philosophy at Nintendo remains the same. Make products and games for everyone.