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I can't really imagine why third parties are still holding out, though obviously 2020 has been the best year yet for third parties bringing big ports over with like Borderlands, Bioshock, Xcom, outer worlds, and crysis already off the top of my head and probably a few more old popular and/or AAA games still to come this year.

But still you'd think by now Switch would be inundated with AAA third party ports both from last gen and some from this gen.

It's obviously not cuz of a perceived lack of sales because even many years old ports of AAA games are selling over a million copies with a higher price than on other systems. If third parties actually starting bringing new AAA games to Switch built for the Switch we'd have a library full of 5+ million selling third party games no doubt.