Sure thing. Nintendo capped the performance of both CPU and GPU either for cost or battery consumption. Besides the display that was for cost and worsened the consumption.
Didn't see your opinion on DLSS itself on how much it really will change the landscape. Because I have a hard time believing you'll be able to make the 100 USD and 1000USD same gen cards look almost the same with one having DLSS and the other not having. Or on what would the GP budget be used if the 1000 USD go for DLSS.
What you're saying here doesn't really make sense, a $100 DLSS card versus a $1000 DLSS card ... the $1000 Nvidia card will still have DLSS, so it will be able to process high end ray tracing effects and things of that nature.
Not that $100 modern Nvidia cards are even available, the cheapest DLSS capable card that's in production is the RTX 2060 Super is $400.
It's only when compared to AMD that yes it becomes a valid comparison is that way. AMD doesn't have DLSS, which means cheaper Nvidia cards can outperform their more expensive ones. But Nvidia to Nvidia comparison doesn't work the same way.