I don't think this quarter losing against last year's will indicate any kind of trend regarding Switch sales and whether or not it will peak this year.
Last year's (fiscal) Q1 was ridiculously high because of a perfect storm and because of you know what, while last year's holiday was relatively disappointing. This year Q1 is 'normal', while it will likely have a better holiday season, fiscal Q3, that will even it out again. This fiscal year overal being lower than last, and as such last turning out to have been the peak, is still probable, but I doubt the difference will be by much. 2021 could even still come out on top because of the holiday. If I recall correctly either Wii or DS also won its best year, or one of the best, solely due to a big holiday, even though it lost other quarters (this statement is off the top of my head) handsomely.
Speaking calendar years, 2021 Q1 beat 2020 Q1, which means the difference now is minor, and again the holiday quarter, 2021 Q4, will likely be better so likewise using this metric, the difference between 2020 and 2021 will also be minor. I think for all intends and purposes, it'll turn out that it'll be fair enough to say that these years were flat.
Beside hardware, software, obviously, is still amazingly good.