I believe Nintendo is more interested in making their profits from software, and would rather sell their hardware at an affordable price to get it into as many hands as possible.
But here's what I'd personally like to see happen:
What if Nintendo released a successor to the Switch whose software can still be played by the regular Switch (albeit at a lower resolution). This would allow them to maintain their install base (or at least transition their install base more easily).
Switch 2.0 could basically be a Switch with a 1440p screen (as it would scale nicely with 720p, but if that's too ambitious, than maybe just 1080p), and with hardware scaled up to suit those needs. Nintendo could incentivise developers to create games that can still be playable in 720p on the regular Switch.
Clearly I haven't given this idea very much thought, but it is something that I'd like to see happen. Devs already need to make sure that their games can run docked and un-docked, so this would sort of be an extension of that.
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