Though Nintendo could do this, I don't think they will. Nintendo is almost never willing to take losses on hardware. This would almost certainly require the Switch 2 to sell for at least $400, which I don't think Nintendo wants to do.
I do think Switch 2 will be at least base PS4 specs, PS4 Pro if we're lucky. I unfortunately think anything Xbox One X spec level or higher is out of the question due to thermals or cost.
Lifetime Sales Predictions
Switch: 151 million (was 73, then 96, then 113 million, then 125 million, then 144 million)
PS5: 115 million (was 105 million) Xbox Series S/X: 57 million (was 60 million, then 67 million)
PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)
3DS: 75.5 mil (was 73, then 77 million)
"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima
