I don’t think there’s such a thing as “too powerful” per say, but it is true that we haven’t seen anything from the PS5/XboxX that can’t run on the PS4/Xbone. Even the more ambitious stuff feels like it can be scaled back slightly without becoming worse games (I feel like this cannot be said for PS4->PS3 for example).
Let’s not even begin to talk about the disappearing art of optimization lol. The Switch is not too weak to run Minecraft, it’s just written horribly.