I'm okay with docked mode as is. A patch needs to be released pronto for portable, though. There are moments when it looks okay, and moments when it looks awful. It never looks anywhere close to BotW, and that was built with Wii U in mind.

what about the menu and documents? 

All fine. There is no issue with the text.

The low resolution only occurs in battle when there is tooooo much going on. Not that it makes the game unplayable.

When a first party game goes as low as 368p30fps in handheld mode... god help third-partys.

This is definitely overacting, we talking about only one example thats probably not optimized well for handheld mode. Just look at Zelda BotW game that looks better and has all those real time effects and physics runs at 650-720p.

Right but if a first-party developers making an exclusive game can't optimise well then what can be expected from third party's releasing demanding multiplatforms. If a first-party exclusive game can barely run in handheld mode it's not a good indicator for demanding third-party multi-platform releases, optimising for the switch will be a lot lower down their priorities then an exclusive title.

A question that's been brought up before is, will Nintendo allow docked only games that can't run handheld. Or will they just have to miss out on games that simply can't run, or whose developers aren't willing to put the time in to make them run.

Who said they can't optimise game well!? There is difference between something is not done and something cant be done. Again this is just one example, one game that's not optimised well don't proves nothing, again look at Zelda BotW game that looks better and has all those real time effects and physics and runs at 650-720p. I expecting definitely some performance and graphic patch later because it definitely looks like games is not optimised at all for handheld mode.

Evre game will run in portable and docked mode and in portable mode games will run at lower resolution compared to docked mode, like we saw until now.

"Can't" was a bad choice of words, "Didn't" was the better choice. Again if a first-party developers doesn't bother, why would most third party developers?

Zelda BotW was also a nintendo exclusive game that was in development for 6+ years? But the point I'm making isn't discounted by other examples anyway. I'm just saying if all first-party developers can't be bothered or can't get a game to run well in handheld mode, then you shouldn't expect all third-party developers to do it as well. But it was obvious from the get-go the Switch wasn't a device friendly to third-party developers making multi-platform games. The support it's getting currently from western third party's (Doom, Skyrim, Wolfenstein 2) will be dropped quickly.

Allowing docked-only games would perhaps gain a little more western third-party support for a little bit longer as it wouldn't require as much effort.

Not that the support of third-party's is needed for the Switch's success.

I think this game is rushed that’s why it isn’t optimized in handheld mode. I’ll be waiting for a patch for fixing this before I jump on the  ”Switch as handheld is doomed”-train. Btw I didn’t have any problem with BotW or Mario Rabbids in handheld mode. Mario on the other hand didn’t work good in handheld mode because of the difficulty to use motion controlls in that mode, not because of framrate or resolution.