It's silly to compete against machines from completely different times and conditions. But if it makes someone happy, have at it.

So, Switch now selling something around 7M units is what it takes to become the synonym of gaming?

Sony and Nintendo already have their space as the biggest names in this area. The title of "King of Consoles" was and is pretty insignificant. Its nothing more than bragging rights for console warriors.

Whatever become the best selling system, just enjoy videogames reaching big numbers. Its nice that so many people were and are enjoying great titles during PS2 era till this day 

Keep in mind that console manufacturers tend to have negotiated contracts on RAM and NAND prices with suppliers for set volumes.
For example... AMD and nVidia have contracted prices for processors in chunks of 10~ million units.

It's when they need to renegotiate the next contract that they will get stung with higher prices... Console manufacturers don't tend to follow commodity memory prices, which is both a good and bad thing... Because prices are higher when the price drops out of those components, but they also remain cheaper when prices increase.
Plus they get bulk discounts.

Plus considering the Switch 1 only has a fraction of the RAM/NAND compared to Switch 2, it's going to have a massive price advantage in the current market.

I think Nintendo would be stupid to discontinue the Switch 1 during 2026 with the surging price of NAND and RAM.

4GB Ram+32GB/64GB NAND is much much much cheaper than 12GB Ram+256GB NAND... And considering how good the OLED panel is on the Switch OLED, I hope it keeps getting new games for the next year or two.

I don't like discontinuing systems period. I'd like to see the Super NES and GameCube and other consoles still made, if I can buy a pair of Air Jordan or Air Max sneakers that launched in 1990, why not game consoles. There is a demand for that.

With physical games being phased out a lot of retailers are stuck with a ton of space anyway, it's lame to go into a GameStop and see half the store is Funko Pop figures. 

To the OP, they clearly have no interest in the record. They've made no effort whatsoever to try to get Switch extra sales. If Nintendo actually had a goal for Switch to beat the PS2 they would've dropped the price a couple years ago when sales started to fall off, and also dropped the price of games to make it more enticing. Two things they could've easily done and yet they chose to never change the price (until raising it for the tariffs in the US). They acted completely opposite of the idea of trying to get it to sell a few million extra units. I think execs don't care at all about these sorts of competitions, that's just a certain segment of gamers that like to talk about console wars and records and stuff. PS2 was selling a $99 to get to it's number, Nintendo could have easily dropped Switch to like $150/$200/$250 still be in profit and gotten a lot of impulse purchases, but they didn't because breaking PS2 record isn't on their minds.

Are gamestop shelves vast?

Don't they put in place of physical games cases with digital download codes?

Anywise, physical games are still a great thing thanks to Nintendo switch Family and probably will be for another generation. 

Ps. 

Funko pop here are being sold in lidl. 

There is a franchise hypermarket neighborhood shop that has a glass box full of Nintendo switch 2 games, totally unexpected. 

Should focus on selling as much as they can with how the economic climate is rather than beating a record of a platform that was released 25 years ago.

"PS2 was what made Playstation the synonym of gaming"

"Are you playstationing?" - "Yes, I'm playstationing. I'm a playstationer."
Never heard or read such phrases.

I don't think they really care about passing the PS2. Nintendo is about to fully move on from the Nintendo Switch and will be fully focused on the Switch 2.

Inadvertently you made me realise that i have to tweak the title.

For instance, in the south and east of Europe it is the synonym of gaming. 

The console brand that come first to the mind of the average person is Playstation by far.