If they wanted a bigger sales driver late in the product they probably should have just released a Switch Pro in 2021, the same thing as a PS4 Pro, which would be Switch games just running at higher resolutions.
That would've given a bigger boost at this point than an OLED model, but my guess is Nvidia was not willing to give them a new chip design in a "hey we'll just throw some extra CUDA cores and a new ARM CPU onto a SoC for you!" type of thing without it being basically as expensive as a full blown new successor chip. Nintendo could do that with the DS and 3DS (DSi and New 3DS) models because the ARM cores were easy to swap out/add-on to but Nvidia doesn't work that way. You don't see like a custom Tegra X1 processor for anyone (not just Nintendo) that has more CUDA cores and an updated CPU or something like that.
So it kinda is what it is. You're gonna see late generation decline because it's normal. That Pokemon game for example I believe is the fastest selling Nintendo game ever in 1 quarter (like ever), but you can see it still didn't prevent them from missing their hardware target for the holiday season. That's because at this point you're basically just selling Pokemon games to people who already have a Switch, you've basically saturated the number of new people that would buy in for a new Pokemon with so many previous Pokemon games. And that too is entirely normal at this stage of the product cycle.
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