You're not really making much of an argument here as Wii was only 40 to 50 quid more than GC was at launch and that was the cheapest mainstream traditional console launch to date so when you factor it had a new type of controller plus a bundled game with it along with hardware changes like internal memory, built in modem/wifi and so one it all adds up and was far from overpriced, it also had GC specific hardware in it for BC like memory card and controller slots which also adds to the price which was a massively reasonable price as people were willing to pay it just to try it out while Nintendo could still make a profit from it.

Value is in the overall appeal of the product, those complaining about the Switch 2's price were always going to do so as the same thing happened with Switch 1, GC was in bargain bins because it simply wasn't in demand same way Dreamcast went from £199 to £60 compare that to Switch 1 which hasn't had a price cut even now 9 years on.

WiiU I think was sold at a loss in the initial year but it wasn't a huge loss as it was offset when the consumer bought a game (think Reggie said a consumer would need to buy three games for each unit to be profitable) the platform then went on to be sold at neither a profit or loss which reduced the number of required games sold to turn a profit.

Nintendo was actually originally planning for a $100 price point for the Wii.

With that said... 
If Nintendo had a digital output (HDMI)
And threw in 256MB of GDDR3 memory on a 128bit bus.
And clocked the GPU at a modest 450mhz with an 8-pipeline layout~
And the CPU at 1Ghz.

It would have given the system much better creds.

It didn't need to match or beat the Xbox 360/Playstation 3, it just needed to be good enough.

You're forgetting distribution costs and retailers get a cut.

Never trust a clanker ;)

BOM is certainly part of the costs of a product, but you are all forgetting the costs of R&D that need to be taken into account as well. Accelerometers were nothing new back then, they just became cheap enough to be implemented in the controller. Also note that IR camera introduced in the Wii remote... two new inputs that differentiates it from the Gamecube.

And that's only taking into account the technology side of it, afterwards you have the implementation in the software. Developing something like Wii Sports, how many brainstorming ideas, demos, and test they must have done to nail the gameplay with this new scheme control. The same goes with the IR controls and how it influenced the design of the OS.

With the Switch 2 we now have the mouse pointer sensor, that should be super cheap, but the implementation in the joycon, that costs a bit.

I mean I'd argue the system was "good enough" for most folks, just maybe not so much for some enthusiasts.

While the lack of HDMI was a shame, with a set of component cables I'd argue it's better-made games actually looked fine for the time, obviously a generation behind PS3/360 but still acceptable enough.

Stuff like Mario Galaxy 1/2, Metroid Prime 3, or Monster Hunter Tri looked satisfactory to me, and I had a PS3 and 360 too.

Graphics are nice but at the end of the day games matter. The wii had galaxy, prime, twilight, etc. Fun system.

Series X has great graphics but no games that are unique to the system.

Nintendo has freedom in hardware design because they continue to be the best developer in gaming.

I dont portable game at all.. and would prefer to have a S2 TV only version with more power.. yet I got a S2 day 1 because of kart and DK and prime 4.

Power means nothing without quality software.

At this point, I want a system with much faster load times and significantly more storage space than more graphics.

I would’ve gladly taken a slightly less powerful Switch 2 if it meant the games load faster and it had 1TB of internal storage instead of 256GB

Wii and DS worked for their time, their successors were not as successful. For 2005-2010 give or take, Nintendo rode a very wave that was a sign of the times. I think the iPhone and iPad and Android devices unfortunately kind of made that blue ocean very red and so did Kinect and Move. Either way, that's now 20+ years in the past and not really applicable to the current market or even current Nintendo.

The Switch 2 is not much like the Wii or DS at all, it's a premium product with really high end graphics capability for a mobile device, it holds its own and even in some cases surpasses like $600+ PC handhelds and can run modern versions of modern games. You couldn't run the PS3 version of like Madden NFL or Call of Duty natively on the Wii or DS, no way, the Switch 2 can do that for PS5 games. 

The Wii had to have its own versions of things like Call of Duty and Ghostbusters made for it.