I think everyone wants that, but what that ends up looking like exactly, who knows? Will it pay out? Will it simply be better AAA quality, but the same typical amount? Will it be similar AAA quality as now, just more of it? Can Nin somehow, someway, give gamers both? Is any of that heavily reliant on the new pricing structure for the SW2 ecosystem? Will Nin be able to keep that overall pricing structure long term, while selling SW2 units like they're going out of style?

As you say, we shall see, but I have my doubts. Mostly about hardware sales, though that would likely impact software to a degree. I have a hard time believing SW2 blows past 100M units with record breaking software sales, based on the present business plan they've decided on for next gen.

Probably true for first party games and some third party developers like CD Project Red, Croteam and id Software.

But unfortunately I also expect many lazy ports and enhancement packs from Ubisoft, Electronic Arts, Square Enix & Co., where the docked Switch 2 version ain't recognizable better than the PS4 version and the undocked Switch 2 version has problems to keep up with the Steam Deck.

Switch 2 doesn't need to have better specs than the Steam Deck on paper to perform better in practice, even in handheld mode. Games aren't really optimized for handheld PCs and a PC with the exact same specs as a console is always going to perform worse than the console when it comes to running games. I expect games that are shared between Switch 2 and Steam Deck to usually perform better on Switch 2 in handheld mode based on what we've seen so far, with the gulf widening in docked mode.

Steam Deck is also running a full-fledged Linux in the background. Sure, Valve optimised SteamOS, but I imagine there is still a lot of stuff running that will not be present at the Switch 2, like Aptitude or something. According to reddit, SteamOS uses anywhere from 1-3 GB of RAM when idling. Some users are also reporting the CPU sitting at 30 % usage when nothing but the Steam launcher is running. So there is always something happening. I think Nintendo might slim all that stuff down quite a bit.

But I'm no expert or anything. =P

Yeah, around 20% above PS4 in RL tests is what my napkin math says as well - finding GPUs from that long ago in any comprehensive GPU ranking tables is quite a feat, but there are some that confirm it. But, as I said, features that SW2 has that PS4 doesn't, being RT cores, DLSS and higher memory capacity (though with lower throughput) will put it somewhat above that, and in some cases fair bit above that. And let's not forget that some devs will definitely put in extra effort and newer optimizations/techniques into Switch ports - from my POV, it has almost become sort of bragging rights at this point for devs.

Still pity for not going 4nm, though I think this is very deliberate choice on their part - 8nm is cheaper, thus leaving more profit, and they have clear path to 4nm OLED revision with better battery life for the same capacity in few years.

But it seems that the Steam Deck doesn't have "exact same specs as a console" but noticable better specs than a downclocked Switch 2 in undocked mode.

So it ain't sure that games that are shared between Switch 2 and Steam Deck to usually perform better on Switch 2 in handheld mode.

Especially thousands of Switch-1-games on Switch 2 without enhancement patches (or with lazy enhancement patches).

If FF7 Remake is anything to go by, the Switch 2 is using the next generation intergrade version, not the PS4 one. So Square Enix seems to be putting in the effort. 

Ubisoft an EA are a whole different matter, but everything we've been hearing from developers is that the Switch 2 is quite an easy platform to port to. So the gap between the low effort ports and high effort ones probably will shrink.

What are you basing the bolded on? If we account for the difference between RDNA2 and Ampere, the Steam Deck is about + 25% of the Switch 2 handheld when running at max clocks. But that is for rasterized loads only. 

In any title where Ray Tracing is mandatory (which are becoming more numerous) or which incorporates DLSS, I suspect the Switch 2 handheld to out-do the Steam Deck, albeit very slightly. Star Wars outlaws for example runs poorly on Steam Deck to the point of being unplayable but likely will be okay on Switch 2 handheld.

There is also the matter that the 1080p 120HZ VRR screen means that any game that doesn't fully utilize either platform or which you can take advantage of a variable rate will look better and/or run smoother on Switch 2. 

Nintendo would know better than you or I what price point would benefit them most. 

You insist that they'd be better off at $400, but your conclusion seems to be based on vibes rather than any actual evidence since we don't have the necessary data to make such a conclusion.

Like how Nin knew best with Wii U? Or MS with XB1? Or SNY with PS3?

Nothing to back it up? How's the reaction to SW2 been? Nothing but glee and positivity? Simply take my money memes galore?