First off, let me clarify that I really like the X1/PS4, they are quite powerful systems that produce some fantastic graphics. But this arms race that has existed around graphics capability and more and more capable hardware has accelerated the cost for making games and has created an unreasonable level of risk-taking for studios.
There is no doubt that the Switch is far less capable compared to gaming PCs and PS4/X1 but it still produces excellent graphics, has an interesting style and controller interface and pushes the industry with other innovations besides graphics hardware.
So I would claim that we should see a stagnation in evolution of hardware in favour of a larger focus on keeping costs down and lower the risk-taking in creating games. That way we might see even more innovation in gaming and less focus on hunting PC levels of hardware all the time.