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Much better than Switch 1 in the first years. For start it's going to run EVERY major PS4 games, and a good number of PS5 games that were also cross gen with PS4. We are likely to see games like Elden Ring, Final Fantasy XVI, Resident Evil 4 remake, etc all on Switch 2, albeit at lower settings and 30 FPS. I think it will miss some third parties like Cyberpunk and Baldurs Gate 3. I'm sure there will be no GTA VI either

On its mid-life, I think it will miss the AAA games that will start being released in 2 or 3 years, which is when games will start to target PS6 specs and Switch 2 will no longer be able to handle them. Third parties that don't target high specs consoles will still be there, specially japanese developers like Capcom, Square and Sega