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Series S performance in docked mode isn't the upper limit I guess, but it's closer to the best case scenario. Nintendo could likely still thrive with the docked Switch 2 performing like a PS4 Pro, or even base PS4. The docked Switch is well below an Xbox One and is one of the best-selling game platforms of all-time.
I would love Switch 2 to run on a small SSD like the more expensive models of the Steam Deck, but it's not particularly likely.



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