Graphics/performance are a higher priority for Sony since that's one of their key selling points.

Of course, it'd be nice if "second party" titles performed better. Realistically though it's probably just the case that a lot of devs struggled to get decent performance out of such limited hardware as Switch 1. We're talking about a system with a considerably weaker GPU than even the base Xbox One (which had a lot of performance problems itself) and a CPU that's in some ways less capable than the Xbox 360's.

Even some of the more ambitious first party titles like TOTK or Xenoblade 2/3 strained the system.

Hopefully things will fare better on Switch 2 now that devs have far more breathing room.

Yeah, I think we will run into less problems. My concern with Switch 2 is unrealistic 60fps targets and developers letting games go uncapped. Especially as someone who plays on TV where S2 doesn't currently support VRR. I'm not too touchy about perfect framerates but I do hate it when the topic is neglected entirely. In those situations I'd actually rather just stick to 30fps cap

Yeah for a portable system that's going to be sharing a lot of its library with more powerful dedicated consoles, I do think targeting 30fps for most games makes the most practical sense.

That said, I actually don't mind an uncapped framerate in games like say Bayonetta 1/2 on 360/Wii U or Wild Hearts on Switch 2 where its well above 30fps most of the time, but I know a lot of folks prefer a cap, so I feel the best approach would be to offer the option so people can choose which they prefer.

Nintendo could have used a different display technology.
The decision to go with an IPS LCD is a bad choice on Nintendo's behalf.

A VA panel would have provided better contrasts, lower power consumption, better latency, better colours... And do so at a lower price.

An OLED would have made all those same improvements again, except at a higher price.

How common are VA displays in the Switch 2's size? The only small/portable VA displays I know of are in some older (ten year old) 10 inch (or larger) drawing tablets. Are there any phones/tablets releasing with VA panels recently? Without the economies of scale would it have a better price? 

VA Panels are one of the most common display technologies today, they are used in TV's and PC monitors and are getting more common in Laptops and Tablets.
8" VA panels do exist.
Pretty much every performance non-OLED display with PC monitors is a VA panel due to their inherent advantages over IPS with gaming.

VA is generally cheaper than IPS which the Switch 2 has, Nintendo would be able to secure more favorable contracts on top of that as they can guarantee 10's of millions of sold units and can thus decrease costs further.

Nintendo just made a poor decision with the display, they likely stuck with what they have already used as Nintendo has been using IPS since the 3DS days.

IPS *used* to be the best option when your only other option was TN, but it's 2025 now.

Can you point in the direction of one? Spent some time looking on Aliexpress for example, and can't find anything. Also looked for a phone or tablet with a VA panel and the only thing close I can find are the aforementioned oldish drawing tablets. Pretty much everything in the mobile space is OLED, IPS (of varying qualities), or if you go very low end non-IPS TFT (mostly TN.)

VA seems to be limited to gaming monitors and TVs from what I have seen. Haven't seen VA in a mobile device. 

Manufacturers can do "runs" of varying sizes if need be.

But here is a 10.4" Tablet VA panel.
https://www.panelook.com/G104XVN01-0-AUO-10-4-VA-LCM-1024768-470nits-WLED-LVDS-30pins-detail_151562.html

Sharp also do a 7" and 6.4" VA Panel.
https://www.panelook.com/LQ070Y3LW01__7.0__overview_9653.html

Sure, but why go through the R&D and planning for a custom screen when you can buy something off the market that is already designed and "good enough" for the overwhelming majority of purchasers?

There is a reason why almost every PC Gaming handheld is using IPS or OLED, for example. 

Honestly, I do agree that modern VA would probably a be a good fit for the Switch 2 (and PC handhelds in general) as its main drawback (narrower viewing angles) is less of an issue in that circumstance. But the supply just doesn't seem to be there (as evidenced by the two panels you shared being discontinued five years ago and mass-produced 15 years ago.) 

Although I suppose Nintendo could've induced supply (and demand would follow, for other devices to take advantage of excess production capacity) so it might have worked out (with some risk.) 

Going forwards, it's gonna be interesting to see how Switch 2 handles both current gen only titles like Star Wars Outlaws (we already have Kunitsu-gami and Split Fiction for instance) and some of the more advanced 8th gen/crossgen titles like FF7 Remake, and the rumoured Death Stranding 1 and RDR2 conversions.

Some of the more graphically accomplished Switch 1 titles were upgraded 7th gen/crossgen ports (The Crysis Remasters and Alien Isolation for instance) while some well translated 8th gen ports made for showcase titles as well like Ace Combat 7 and Sniper Elite 4.

If Switch 2 can say take a top shelf PS4 title and bump up the textures and settings a bit as we saw with Cyberpunk, that could make for a nice package. The best looking games of last gen still hold up really well in my view.