The problem with these sorts of arguements is that they assess the Switch based on how it will appeal to the PS4/Xbone niche. They ignore the fact that this is not what the Switch is. It's not limited to the PS4/Xbone style console niche.
So where is Switch getting its players:
1. The dedicated handheld market. This market has shrunk from the DS period as over the last decade mobile has become a factor, but it is still a gigantic market segment, and despite very negative (false) press over 3DS's 3D feature causing seizures and brain damage in children, it still managed to top this generation's gaming platforms.
2. Despite not having the specs of XBone and PS4, it is still going to grab anyone who wants the current Nintendo home console, even if it is only 10-12 million, it's still 10-12 million more on top of everything else they're taking.
3. Mobile, Nintendo is leveraging mobile to vastly improve the visibility and relevance of their brand. And while it is not certain if Switch has leaned more into the mobile market than Nintendo platforms have in the past, the hardware is by far the most suitable to do so of any of the dedicated gaming platforms. Nintendo has one of the most powerful brands in mobile after a year, and they're just taking their first babysteps into that industry, and it's apparently a very good fit after testing the waters. Mobile is Switch's wildcard.
4. Games, with the Wii U Nintendo had effectively exshausted their creative juices. Creatively, Nintendo has been in hibernation, and this isn't the first time this has happened, but perhaps the most significant. With the N64 we saw a rapid change in what Nintendo games looked like. After the middle of the N64 generation, Gamecube was a derivative and lackluster stopgap machine, with not really much in the way of Nintendo offerings aside from a handful of minor hits. It wasn't until the Wii that we saw a very fresh and creative looking Nintendo again, and with much more software.
Another factor on games, with the Wii, Nintendo went right up until the end with releasing big software. With the Wii U, Nintendo had nothing new to show after year 1, except some highly experimental titles that felt a little half baked. So Nintendo is going into the Switch with a lot more muscle behind their software. Also consider that the handheld division is now ALSO developing for the Switch.
In short, the Switch has a much further market reach than the Wii U. The Wii U was competing short handed in a limited niche market. The Switch has much broader wings, more room to sore, and more muscle to fly.