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Not having backwards compatibility would've been one of the worst mistakes Nintendo has made in a long time.
Switch is tracking to be the best-selling platform in gaming history and is the most profitable one.
PS2, GBA, DS, 3DS, and PS5 all would've been hurt without backwards compatibility. I didn't say PS3 because it had such numerous problems for the first several years that launching with no PS2 support (or PS1) probably wouldn't have hurt it regardless. The price gap between PS3 at launch and a PS2 Slim at that time was extreme.
This better not be a half measure by Nintendo. The days of backwards compatibility playing all or almost every game at the same performance as the original hardware is done. Xbox One, PS5, and Xbox Series X/S all boost games. Imagine Zelda and Xenoblade boosted on Switch 2.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 48 million (was 60 million, then 67 million, then 57 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima