No.  Not at all.

Nintendo has a collection of great games and IPs that are popular, particularly with younger audiences.  As someone who works with kids, I can tell you that they love Pokemon and Mario.  The problem is that a lot of those kids also love GTA and Call of Duty.  By lacking third parties support, they force their audience to choose one or the other.  And it's not just kids, but also people who like Zelda and Skyrim or people who like Splatoon and Battlefield, and so on.

Having third party support means that Nintendo will have the best (obviously debateable) first party support and comparable third party support.  When combined with the unique features of the Switch (portability, joy cons, whatever else they've yet to reveal) you have a pretty good value proposition when compred to their rivals.  The key difference, which I can't see how you missed, is the first party software.

Read what you want to read.

I don't get people saying its clearly not a home console. If you can realistically play this console on the big screen with specs way above your previous home console, then its a home console. People are hoping the Switch also replaces 3ds but until it does, its not exactly Nintendo's portable console and who knows if they replace 3ds with something else. But what I think will happen is Nintendo will make all the home console games on Switch and all the handheld games on both 3ds and Switch. I mean the 3ds is still selling a lot of consoles even better then last year in some months so why just kill it. Why not prolong its life and keep it alive for a couple more years all the way to 2019 since it really has no competition in the PS vita and still has people willing to buy it and games on it. What they can do is stop making regular 3ds and only 2ds and new 3ds since those two are the ones that sell. 3ds could also be the console that Nintendo supports the longest instead of suddenly cutting it off and that could be a great thing for Nintendo

Honestly tell me how much more powerful do you want ps6 and xboxthree(?) To be. By PS5 we'll already have consoles more then capable of playing 4K games so what'll be next for them. Do you want 8k games or do you want 4k 120fps games? Honestly at that point they would have to make something different and this would obviously be a choice. With the Switch, Nintendo has made a console that doesn't need to be only a portable or just a home console, it is both and when those gates get opened water quickly flows in. And by the time of SWITCH 3 Nintendo themselves should have a true fps stable 4K console with perhaps a 1080p touchscreen or Nintendo again gets some fancy idea and the switch line encounters their tragic end

 With VR around the corner I think you are correct sir.  I think there will be a demand for stronger, faster systems to provide a more realistic VR experience...sure...maybe in 30 + years down we'll see smaller devices..but that need to "more realism" is always gonna be there at least for quite some time.