First of all Xenoblade X is a very different experience compared to the other Xenoblades, and considering they've been willing to release 3 full games, 2 standalone expansions and a bonus epilogue for the frist game over Switch's lifespan, I doubt they're concerned about franchise fatigue.
Second, I actually played the game again a bit over a year ago before Xenoblade 3 was announced, and though the gameplay still holds up the visuals don't have nearly the same wow factor from 2015 on modern screens. It honestly just looked a bit flat and dull, but the core art style and world design are still impressive enough, that if they were to remaster it for a next-gen 1440p+ system with some modern lighting and whatnot, it could be awe-inspiring again.
My hope is that they would use something like that as an easy launch window title, while also announcing a new Xenoblade X game and giving the mainline series a rest, since that's been thoroughly done on Switch now.
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