It’d actually be more surprising if they didn’t have a new iteration by around the 2 year mark from launch, and another around the 4, and another around the 6. Nintendo is working with Nvidia over at least 10 years, and scalability is one of the things they brought up as important. What will happen is the first new revision will have no exclusive games, and it will only be on Switch 3 or 4 that we begin to see support dropped from the 1st generation Switch entirely.
On higher end Switch devices, software will have better performance; it’s similar to iOS and PC gaming. It might be a little bit later, the Switch OS definitely needs some updates before they can do this, but there’s about a year left.
Why every 2 years? I’m going strictly on the fact they revised their handhelds every 2 years; it could be 2.5 years to get a closer to holiday season launch.