I really think the best thing Nintendo could do at this point is to drop the price of the Switch and sell Switch 2 for 399.99.
This way you have a budget option Lite for $149.99, OG Switch for $249.99, and OLED for $299.99. The do Nintendo selects ranging from $30 to $40 for select titles. Make Switch 1 the budget option now.
But I doubt Nintendo will do that lol