Yep, in the past, Nintendo needed to refocus it's Software efforts towards its next system and had to do this while balancing Handheld and Consoles software lines & hardware launches. Switch has resolved this issue until a successor is released since it has combined Nintendo's software output.
With the Switch, past trends are really out of the window. The Switch will not perform like prior Nintendo systems in its price bracket, so any illusions about falling off a cliff or slowing down are a bit of wishful thinking from people. Next year will likely see hardware sales that rival this year's, and the Switch is yet to have an official price cut, Switch Lite being a somewhat of a price/feature cut(similar but more successful than the 2DS).
Some people underestimate it because they are only interested in Nintendo failing.
My view is the Switch was a trial run for Nintendo for the real Switch 2 that will follow. They are already asking devs about 4K games, and to me that would imply using DLSS.
They will go hard and make a new Switch 2 as soon as it is practicable for them to have undocked mode at 1080p 30fps/60fps. This will then be scald to 4K
Personally I hope the Switch last another say 3 years then in 4 years time we may even have a switch model that has ray tracing built in.