Dreamcube U.

The Steamdock is like 7-8 times more powerfull than the Switch, docked.
Thats with x86.... (slightly more power hungry than Arm)

New Arm CPUs and nvidia GPU, and you could easily do a Switch 2, thats like 10 times the power of the current Switch.
More than enough reason to do a new gen, on graphics and capabilities it would bring to Nintendo gameing alone.
Then factor in new things to tech since.... like DLSS 2,0.

Switch 2, with DLSS upscale to 1400p1800p for 4K TVs.
A 1080p handheld.

VR isnt needed, you just need a nintendo console thats not a gen behinde, in terms of visuals and resolutions ect.
Thats all it takes, for nintendo to sell a Switch 2.

Market it as the "4k Switch".

I normally look at the mid-gen upgrades to get a clue to what the next Nintendo handheld will be.

GBA SP added a clamshell design, a backlit screen, and dedicated rechargeable battery pack.  That was a pretty major upgrade, and all of those changes stayed for the DS.  DSi introduced an OS and the capability to download digital games.  Both of those features stayed with the 3DS.  The 3DS XL was basically a larger and more powerful handheld with an analogue nub.  The Switch continued this trend by getting even bigger and more powerful and the nub evolved into a second analogue stick.

The most notable thing about this OLED model is really just how little it changes.  The changes it does have are mostly handheld in nature: OLED screen, bigger screen, better kickstand, etc....  Whatever changes happen with the Switch 2 I mostly expect to happen on the handheld side.  Then you can also take that device, whatever form it takes, and still dock it for home console play.

Nintendo should never pursue innovation purely for innovation's sake again.

If they had released a 'Wii 2' that kept or slightly upgraded the Wiimote instead of trying to reinvent the wheel again with the gamepad then the system would have sold multiple times what the Wii U did. The original Wii was outselling the Wii U for much of 2013 despite being abandoned and replaced by Nintendo, so it wasn't the Wii brand that was the problem. The Wii U was so unappealing that Nintendo would have been better off just continuing to make Wii games and selling Wiis instead of making the Wii U. They'd have sold more Wiis from 2012-2017 than they did Wii U's in that period if they kept supporting and producing the Wii. I doubt a true Wii 2 would have sold 100 million like the Wii, but I could see it selling anywhere from SNES numbers to 3DS numbers.

Nintendo is in a similar situation now to where it was in the Wii era, and if they try to reinvent the wheel again they will be making the same mistake all over again. The Switch as a concept and brand could be as stable and popular as Playstation is and the Gameboy brand used to be before the DS prematurely killed off the GBA. It could be a line of systems that sells 100 million consoles every generation as long as Nintendo doesn't screw it up. The end of the motion control boom meant that the Wii brand didn't have that kind of potential even if its successors could still have outsold the NES, but the Switch can do it if Nintendo doesn't muck it up like they did with the Wii U. They could lose many tens of millions of console sales by introducing a bad innovation like they did with the gamepad.

That tends to be true much of the time - the Wii and DS era felt incredibly fresh and exciting. But they’re also great when they retain stuff that works for them - while the Wii and DS added features, they also retained others.

But sometimes a good feature gets lost along the way. I can’t be the only one who both misses the original 3DS Street Pass and feels they could have gone in more interesting directions with it. There’s probably a reason for it.

The Switch retains most of the best stuff Wii brought to the table: the EShop (evolved through 3DS) is a rebranding and restructuring of the Virtual Console and Wiiware, Joycons have motion controls, the News channel is the continuation of the Nintendo channel.

It’s also better when Nintendo doesn’t change things up just for the sake of changing them up like they did with the Wii U. While it sounded great on paper, the moment people got it into the heir hands the shortcomings were evident. But then there are the Wii and DS, people saw it or played it, and wanted one. Asymmetric gameplay was a flop, the two screens complicated the UI/UX experience rather than simplified it, the range limit nullified any advantages to Gamepad mode.

The 3D screen hurt the 3DS - many forget the crazed antivaxxer levels backlash regarding the glasses free 3D - claims of everything from worry about eye damage to worry about seizures and aneurysms... not saying the 3D was good, it was kind of broken until the new3DS came out since the original had to be held at a specific angle at a certain distance or it would break the 3D. There I might be a reality where 3D with a fantastic 3D film service could have been great, just not our reality.

Anyway, I’m rambling. TL;DR, I agree with the spirit of your post in all cases where Nintendo plans and executes correctly.

I would be severely disappointed. The Switch is the PERFECT concept for gaming. I just want them to improve on what is there already.

As long as you can play your old Nintendo Switch games on it (or at least almost all of them), I don't care if it's not Switch 2.

I loved StreetPass and I am sad they dropped it with the Switch.

They've already put all their eggs in the hybrid concept, so it'd be rather unthinkable for them to try and go a completely new direction already. So yes, 'too dangerous'.

The 3DS introduced gyro controls.