I think even if the Switch 2's price increases, it still has an advantage. The reason is because price-inelasticity doesn't usually follow a linear pattern. A $100 increase on a $500 system is not the same as a $100 increase on a $450 system. Everybody has a price that is "too expensive" and beyond which they can't purchase, so even if the Switch 2's price increases it will be below many people's "too expensive" than a PS5's.
If I were a budget gamer I would be looking into PC gaming with APU's at this point. By the time GTA 6 releases on PC (say middle of 2027) you probably can get a Nova Lake APU with graphics performance roughly at base PS5 level, that costs a little bit more than a base PS5, but is upgradeable to next-gen performance when PS6-equivalent dGPU's release. If ram prices come down, this is an even better comparison because I doubt Sony will decrease prices if ram prices come down.
Ram prices can easily come down too, given that all AI companies are trying to develop more memory efficient algorithms and there is a lot of pressure in the hardware area of that space too toward in-memory compute that would segment the market away from using consumer-like memory.
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