So far I'm loving it so yes.

Nintendo is simply too good at producing software and the console is a proper upgrade along with the improved 3rd party support. So yes, Switch 1 is in trouble.

I would guess no.

And not because of anything deficient about Switch 2. Far from it, in fact. The tech is better and more future-proof than Switch 1, and the the build is better (I picked up the original Joy-Cons the other week and suddenly realized how small and toy-like they are in comparison to the Switch 2 Joy-Cons). Moreover, the system has produced two legitimate GOTY contenders in less than 60 days.

But you're asking something to top what is maybe the best video game console ever. It's a tough task. And even though Nintendo has already launched two generationally great games on Switch 2, it's actually, unbelievably, behind Switch 1, which at this point in its life cycle had hosted arguably the best game ever made in Breath of the Wild and the best racing game in Mario Kart 8 Deluxe. That just shows how tough it will be to stay ahead of the software output on Switch, which, ultimately, determines the better system -- at least for me.

There are obvious upsides and downsides here.

On the plus side, there's Nintendo. They've delivered better hardware (build quality, faster and improved eShop, so far I haven't noticed the console making any noise, the Pro Controller lasts ~50 hours in comparison to Switch 1's 30-35 hours). They can be counted on to deliver good to great games on a consistent basis. Backwards compatibility with Switch 1 software that improves these games even without any patches (dynamic resolutions and framerates now tend to run at max capacity, loading times are reduced by ~20%).

On the other side, as always, there are third parties who are bound to throw in wrenches. Right now it's looking very grim for physical games, but it's too early to call it. On Switch 1 we eventually saw a lot of digital-only games go physical. Or if we look at the beginnings of Switch 1, third parties didn't even want to put their games on it in the first place which is a worse situation than what Switch 2 is in right now. It's entirely possible that we'll see a resurge in physical releases, because just like any semi-prominent third party release received extra attention on Switch 1, the same is going to hold true for Switch 2 physical games. Early indicators point towards game-key cards flopping across the board.

I do enjoy playing Switch 2 much more than Switch 1 over the course of the first three months launch-aligned, but the question mark is how many games I'll buy over the course of the system's lifetime. I've got close to 100 physical games for Switch 1, so the bar is set pretty high. Nintendo games alone won't get me over that hump. Of course there are a dozen or so stinkers on Switch 1 which inflate the number a bit, but substracting them still leaves a tall order. I do not necessarily need more Switch 2 than Switch 1 games, but getting at least reasonably close (say, ~75 physical games) would be welcome.

One thing I'm not a fan of is the new virtual card/game sharing implemented with the Switch 2 that they brought it to the Switch 1. I have two Switches, regular and lite, and I use to be able to download the same game on both consoles at the same time but now you can't do that anymore and you have to link with each other etc...such an annoyance.

Hardware: Switch 1 felt perfect, Switch 2 feels similar but more restricted so not feeling that.
Software: It's too early to tell. But I'm definitely not loving this new virtual card feature, not a fan of keycards, and not a fan of the price hike.

Nothing about the Switch 2 has impressed me yet so I won't be picking it up anytime soon.

This isn't entirely true. In some ways it's a downgrade, like the screen for example. Battery life is also a downgrade, even though It's understandable because of the increase in power. Still, the fact remains that in some ways it's a downgrade. See what Pemalite had to say about the screen. That's a cause for concern Imo

I don't disagree the screen is awful and the battery is meh, but it clearly (overall) is a huge upgrade.  0.3 TF to around 4 TF.  25 gb/s to 102 gb/s.  DLSS, etc.  it is a massive upgrade.

edit

256 cuda cores to 1536 cuda cores.  Some aspect of the S2 are a bit disappointing (lack of VRR docked), but nobody in their right mind can call it a downgrade.  The S2 decimates the S1 in performance.  

It all comes down to games. If S2 gets many great games than ofc I will enjoy it as much as S1 and even more (better and more powerful console with a lot better 3rd party support). What is there not to like? MKW and Bananza shows ninny can take a risk and I expect nothing else from them. New Zelda and Mario can again set new standards for industry.

I’m extremely disappointed with my Switch 2 so far, here’s what the issues are for me:

. It feels substantially heavier than Switch and the right thumb stick is almost impossible to reach comfortably, I had to buy one of those grips because my thumb was cramping up trying to use it. Just like the Switch 1, Nintendo hasn’t learnt anything when it comes to ergonomics. The battery life is also ridiculously short, and the system gets hot during gameplay, the cooling system isn’t good enough.

. Mario Kart World is a complete misfire, nowhere near as good as MK8, I just can’t get used to the control differences. Going round corners was effortless with MK8, now I just hit the walls. Another thing touted as a game changer for it is the rail riding and wall jumps, but to be honest I rarely see them during a race. I played several races on multiple tracks and only a couple times did I notice a rail, and by the time I did it was too late to hop on, and Ive never performed a wall jump yet. I’ve been playing Mario Kart since the Super Nintendo, and been good at all of them, this one though, I just can’t get the feel for.

. Donkey Kong Bananza: I’ve seen several publications and fans online say that this game is considered a successor to Mario Odyssey (make that make sense!) which tells me that Nintendo is nowhere near close to completing a true Mario game for Switch 2, which makes my console a dust collector until one finally comes out.

It’s now boxed back up and in storage, I would sell it but I got a £75 gift voucher on my account for Christmas and haven’t found anything to spend it on and they can’t be refunded.

There's only one first time for everything in life.

The first time you played tabletop mode and shared your Joycon.
The first time you continued playing Zelda in a train, which you started earlier on TV at home.
The first time you put your Switch into someone's dock to play your digital games with others.
The first time you played local wireless with someone you've randomly met, who also had a Switch.

The first time will always be remembered as something special. I think Switch 2 is too similar to have those new experiences you will remember.