Here's how I see it working out:
Year 1-4: The Switch is Nintendo's primary console, fully taking advantage of its hybrid nature.
Year 5-6: As Nintendo begins to transition to its next console and the software begins to dry out, the price is aggressively cut and new iterations of the Switch focus consumer attention on its handheld abilities.
Year 7+: The Switch is now Nintendo's secondary console. It is sold for under $100 as a cheap alternative for families just looking to get a popular handheld to their children with a rich library of games available.
Yep. This is how Nintendo almost always does it, at least when their console is successful. I am kicking myself that I moved onto the SNES so quickly and didn't even look at the NES again. The NES got a lot of great games even after the SNES was released.
The real weird exception is the Wii. I have no idea why Nintendo stopped supporting the Wii. I can only guess that they thought the 3ds and Wii U would be so successful that they didn't need the Wii anymore. (Of course they were obviously dead wrong.)