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It is maybe not impossible in late 2021 to have a portable with a power similar to a base XBOX1/PS4.
I see no problem with that: The new switch could play every current switch games thanks to a total retro-compatibility.
At this point in late 2021, customer could buy a regular switch costing only 240€ maybe, the Lite at 150€, and these 2 consoles could still be supported until 2022/2023 because Nintendo could manage internally clean ports to keep releasing downgraded versions of their future IP on the 2 old Switch, and next to this a full version for the new console (350€ ?).

3rd party can release new games on 64/128Go cartridges for the new switch, and they have the possibility also to create downgraded games on the 2 old switch to take profit of a 80/90 millions install base.

Current PB on Secret of Mana remake : 2h27 (2nd)
Strongest worldwide achievement on TGM : 1st European S13 rank
Fastest TGM3 MASTER in Europe : rank Master V in 5min10
Western record on TGM3 EASY : 1484
Current PB on Power Ranger (Game Gear) : 10min06 (World Record)

Non-geek activity : ThermalHungary