Switch is probably entirely what the New Shield Portable was meant to be conceptually,  minus the game carts and removable motion controls.

Honestly.. I think it could be better performing, but not better looking, Nintendo as a whole have failed at being able to produce HD assets in any form of a decent time frame, I think if you were to go over all of Zelda and try to increase the resolution of all of the textures in game to bring it from the 16gb it's at right now up to something like the witcher 3's 60gb file size then you would be talking about a game being in developement for the next decade and coming out so late that people would have shit all over it for not living up to that fact.

I think Zelda BotW is perfectly functional from a visual point of view in that it has that sort of timeless Nintendo look to it, sure 30fps is low but for a game at the pace of BotW again, it's a perfectly functional framerate. I think Switch hardware meets the requirements just perfectly.

- Just to be clear, I'm not suggesting that the game couldn't look nicer, I mean... if it got touched up to look like Infamous Second Son dear lord that would be great, but I don't think Nintendo developement is at that level HD game creation just yet.

good luck with that wait, and don't hold your breath.   it isnt happening

Couple of interesting things about this then ...

1.) It means Nintendo could technically if they wanted to release a Switch redesign as soon as even this year. Not saying they will do that, but we know the Tegra X2 (Parker) chip is readying shipment in like a month ... that chip can operate at the same level of a Tegra X1 at 1/2 the power consumption, which means a more compact Switch with say the right/left bezel borders cut off and a possibly bump in battery life would be doable basically right now. Of course they won't release a new model just yet, but it does like mean Switch revision is very likely I think next summer IMO. DS/3DS got their first revisions around the 18 month mark, I think Switch will be similar. 

2.) A full-on Switch 2 could be made without much fuss either in a few years time. A Tegra X3 (Volta based?) would probably give you 1.2-1.5 TFLOP docked, and 2.5x less that undocked would be a nice sized upgrade and Nvidia is likely already developing this chip as they have been finished with the Tegra X2 design for a couple of months now. 

It is still kinda mind blowing though that after all the fuss about NX it basically just turned out to be a Shield tablet with removable controllers as the big "surprise" though, lol. 

It can still be sort of customised I guess by which parts are disabled but that process can be done electronically externally. I.e. disabling the LITTLE CPU's and maybe other functionality that Nintendo didn't need so when a true customised cheap arrives its really just a cut down version of the X1 designed to be easier to manufacture, to have better yields. A bit like how intel may disable some features on chips reduce cache size etc or even disable certain cache. One thing is obvious though it wasn't customised for greater performance it has been customised for less performance. 4k resolution output (disabled), 8 channel sound (disabled), high speed video decoding (requiring licensing, disabled) etc.

Also a later chip could integrate some functionality that is on external chips currently on the motherboard. Not sure what they are but its possible, maybe a battery charging controller chip or wifi.

I  see a parallel between DS phat to DS lite/ DSi/XL for the Switch's future.  After  these gen 1 switches get phased out, I'd say in 1.5 yrs max, we'll see at least 2 more new Siwtch models that take advantage of the X2 performance.  Not sure about the order, but definitely a $249 Switch LITE  w/non removable controls & ac adapter (dock w/hdmi & controller sold separately) featuring a 5 in. 720p  screen. This model gets improved battery life obviously.  But also a 7.5 inch XL model (that remains aligned & compatible w/the joycons by simply removing the bezel from new screen), would improve tabletop mode & feature a 1080p screen = runs at full clock speed in any mode.  

As far as next gen Switch that should be 7nm in 2021, with a 1440p screen that upclocks in dock to  ninty 4k.

It's not called "customized" outside of the most bullshit of bullshit PR departments. It's called "stripped down", as it has been for the past 20 years when discussing hardware tech.

You don't give something the benefit of the doubt when the facts are right in front of you to prove the negative. It's not intellectual or more importantly, honest discussion.

Switch's launch price is $299.

Or 29980 yen ...
~ 265 USD
~ 345 AUD

Nintendo is sell the Switch for 300 USD and 470 AUD.
There is plenty of room for a price drop, without reducing manufacturing costs.

I'm thinking more like 

Tegra X1 20nm (2015) - 394 GFLOP docked (500 GF theoretical)

Tegra X2 14nm (2017) - 788 GFLOP docked (?) (1 TFLOP theoretical)

Tegra X3 7nm (2019) - 1.57 TF docked (2 TFLOP theoretical)

Switch 2 using Tegra X3 in fall 2020 (?)