Nintendo isn't entitled to subsidize jack shit, if they want to make a profit that's their prerogative and they're not evil for wanting to do that, virtually no other company on the planet sells anything at a loss or cost.
Games are much more expensive to produce and take much longer to make these days (which means you as a platform holder are pouring money into games for years that may not see a dime in profit for 5/6/7/8/9 years). This is not the dynamics of the 1990s, 2000s anymore. It's entirely reasonable now for platform holders to want to make money off their hardware. The cost of developing hardware is also likely much more than in the past as it's more sophisticated.
The Japan only Switch 2 model is "cheap" because the value of the Japanese Yen has become much lower relative to other currencies, at 49,980 yen that's way higher than 29,980 yen the Switch 1 was at launch. The Switch 2 is a 166% price increase from the Switch 1 in Japan, in the US the Switch 2 is only a 150% increase in price from the $299.99 that the Switch 1 was.
$450 USD is an entirely reasonable price for what the Switch 2 brings to the table, the hardware in the system is legit and able to run even current gen games on the go and at home.
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