eh 720p is fine for me.
sub 480p portable is bad though

Yikes, look they had to make compromises to get it out in 2017. Still getting it out of course, but it looks like I'll mainly play it in docked mode (just like Zelda, though that was better performance-wise).

Third party support will definitely be bigger next year compared to this year. Already confirmed for next year: 

- Project Octopath Traveller

- Travis Strikes Back: No More Heroes

- Shin Megami Tensei V

- Mega Man 11

- Valkyria Chronicles 4

- Dragon Quest XI

- Dragon Quest Builders 1 & 2

- Wolfenstein 2

- Hollow Knight

- Inside

- Starlink: Battle for Atlas

And this is probably just the tip of the iceberg. Namco is heavily rumoured to announce a bunch of Switch games very soon. Dragonball Fighter Z, Dark Souls Remastered and Soul Calibur VI all seem likely. 

Exactly, I am pretty sure that we actually don't know anything yet about most of 2018. Switch 3rd party games, that majority of games yet need to be announced.

Talking about Dark Souls, last few days Dark Souls 1 Remaster is haveli rumoured from some solid sources, for all current consoles.

Given other first party titles have not suffered from this issue, I suspect Xenoblade 2 was somewhat rushed to make it out in time for the holiday season.

As for demanding third party ports, we already have Doom running at a higher resolution when portable compared to Xenoblade 2.

I don't think XC2 is a particularly useful reference point for 3rd party developers. Many of its issues extend beyond what makes sense (e.g. the resolution sometimes dropping almost twice as much as what the handheld GPU downclock should justify), and it having been pushed out too early is a reasonable explanation for them.

Doom would be a better example given it's an actual 3rd party port, and seemingly a pretty well handled one. There's a limit to how broadly we can apply any single game here simply because they're all balanced differently, but Doom has highlighted the difficulty many less flexible titles are likley to face.

2018 will definitely be a bigger year for 3rd party support. If the games flop... that may be the end. We definitely aren't there yet. If we keep buying quality 3rd party games, they'll keep coming... and my wallet will stay empty.

I'm not sure if 3.5. years of development necessarily counts as rushing. It could also be related to Monolith Soft adapting to the Switch's hardware even though specs-wise, the Switch is not that much more powerful than the Wii U. Docked-wise, its pretty good, its just the portable mode that suffers the most. Hopefully they'll patch it when they are able to optimize the game.

Besides, hardly have time to look at the screen's action anyway. I'm staring at my arts build up, the top right branch for combo, the enemies bar for any changes such as topple, ect, my blades cooldown for switching, ect. All while glancing at my character to make sure I cancel attacks at correct time ot build up special faster. Then when doing specials its quick time event time. There is no time to appreciate or not what else is going on on screen. The image posted showing like 10 knockdown texts, I would probably not even notice. For as boring and pointless combat starts the game at, it gets to a super intense micro managing where you are looking at 20 things at once to optimize your battle.

And having just recently gotten Mythra, I'm wondering if a new aspect will start being added to battle as well. So far only used this "forsight" in two cutscenes, but I'm wondering if we get some sort of abilities like the Monado had in future telling.

You make Zelda sound like the exception when its Xenobalde that is the exceptiong.

Look at Zelda, Mario, Splatoon, Mario Kart, ect and tell me what you notice for handheld mode? They are all great handheld optimizations. It's ONLY Xenoblade that isn't great.

I have played in handheld at times and it looks great to me. It's a little drop from docked sure, but its on a small screen and looks 100x better than any 3DS game anyway.