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"B: That PS5 can sell as many 3rd party games in a quarter as the Switch does in its entire lifespan. "

While that might be true.... ultimately what matters is just the total software sales.
And while PlayStation has higher software sales, its not by insane amounts.

Switch seems to have topped around 230m software sales pr year (it goes up and down)
While PS4+5 sales (sony lump them together), in the same time frame are like 300m+ at its peak (and seem abit more consistant than the Switch's software sales).

However if you factor in how much more first party sales Nintendo has.... and how much cheaper they make their games.
I bet you Nintendo is making more profit (if not revenue) on software sales, than Sony currently.