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Tbh Switch being PS4 level will be more than fine for me.

We are reaching a point in gaming where spec upgrades are leading to less and less major improvement to the graphics, and I think it is the most noticable this generation between PS4 to PS5. I honestly feel like I haven't seen any major upgrade in graphics with the PS5 compared to PS4, their the type of differences where you need to zoom in on textures to notice them. PS4 games still hold up well til this day. The advancements from the 5th to 6th gen felt huge, same goes for the advancement from 6th to 7th gen, even 7th to 8th gen felt like a big advancement, this gen didn't nearly feel as significant when it came to graphics advancing.

Even if Nintendo continues the Switch hybrid concept for the the next few generations, with less major advancements in graphics with each generation the hybrid Switch consoles will feel like they eventually catch up close enough to the graphics seen on home consoles even if the specs aren't neccessarily the same.
This is what Satoru Iwata envisioned back over 20 years ago, he realized that graphics advancements will eventually slow down and that they would need to offer something new with their consoles to make them standout outside of specs, and realized that the race to create the most powerful console making the most detailed games imaginable wasn't sustainable for success in the long run, eventually advancements will slow down while development costs will skyrocket with diminishing returns in graphics, which is why Nintendo's been on the same path of not caring about specs for 20+ years and focus on making innovative consoles that truly change the way games are played. This is why the Switch concept will continue to age like wine more and more if Nintendo sticks to it.