Price of components is all relative.
Nintendo is certainly not paying market rates for any of the components in the Switch 2... Especially RAM and NAND.

Conversely... Whilst the Switch 2 is expensive, there are facets where significant price reductions can be had.
Smaller display, smaller battery, ditch the dock, ditch the joycons, smaller SSD... Can probably shave a good $150 AUD or more off the MSRP of the Switch.

Switch 2 TV could take it a step further... Eliminating the display and battery entirely for an even lower price.

Another price reduction would be to move the fabrication node to a more modern, price reduced one... You would also be able to extend battery life at the same time, solving another issue with the Switch 2.

Nintendo could also go in the opposite direction and release a "Premium" Switch 2 which fixes the current consoles shortcomings by having an OLED display, which would increase the average selling price of the Switch 2 consoles, there-by giving them room to subsidize a low-end entry level device.

Nintendo really have a plethora of options to keep sales momentum and hit those price-conscious gamers who feel the current price is simply far to high. (Which is fair. It is high.)

Time will tell what they do, but as a company they aren't afraid to diversify their hardware lineup if the last several handheld generations are a good example.

The price of all consoles need to come down though, absolutely zero doubt about that in my mind... Nintendo is probably the best placed to capitalize and profit off a low cost, low-barrier entry into console gaming whilst Microsoft and Sony keep chasing that premium over-priced, high-affluent market.

People forget that consoles are targeting lower socio-economic demographics... The Playstation 5/Pro and Xbox Series X are already priced outside of that now, the Pro especially is really only appealing to more affluent individuals/homes.

In Nintendo's case it's even more sensitive as many households with children, parents will buy a console for each spawn/child for Christmas/Birthdays.
However Nintendo could (And SHOULD!) release cost-sensitive devices to appeal to those individuals with a Switch 2 Lite/Switch 2 TV console.

So yes, while prices remain favorable when accounting for inflation, have wages kept pace? If not, then consoles need to align to wages, not inflation... And that simply hasn't been the case.

Right now one of the cheapest ways to get into gaming is buying something like a cheap Dell Optiplex off ebay for $100 AUD and dropping in a Radeon 6600XT off ebay for $200-$250 AUD. 
And that never used to be the case.

Nintendo needs a value proposition that isn't the preceding Switch Lite... As does Sony.
Microsoft needs to cut the price of the Series S so it's actually cheap, especially if Gamepass can subsidize the hardware.

Or not. 

Nintendo and Sony don't control inflation and certainly not how much wages rise. At some point either you can afford it or you can't. 

There is a cheaper option for price sensitive consumers and parents of younger kids, they are called the Switch 1 and Switch Lite and they still play perfectly fine today. That's why I don't see a problem with those systems being continued to be made for another 3-4-5 years. A 6 or 7 year old doesn't need something as high end as a Switch 2, it's overkill. 

Switch and Switch Lite are last generation devices.
I could argue a 6 or 7 year doesn't need any video gaming devices, but that's not the point of them, they aren't a "need".

Nintendo, Sony and Microsoft have control over how much their consoles cost relative to wages at the time of release.
They chose the hardware they have, they chose the initial price they had, they chose not to subsidize hardware like they have historically through game sales/services.
They don't have control over component price rises, but they do have control over cutting costs, die-shrinks and arguing for better component/assembly contracts.

Consoles are for lower-income demographics and households, they need to be accessible for everyone.

Right now in Australia the Playstation 5 Slim with Disc is $1,000 AUD, Switch 2 is $670 AUD.
That's messed up... If you don't see the issue with that, then I am not sure what to tell you.

But it's not acceptable and we need to advocate for lower priced, easier to access, hardware.

While I didn't own one myself I can definitely see the argument for it being most like the GBA; a straightforward successor with a big jump in power, and a portable machine with backwards compatibility as well. 

One could also even liken the initial models of both as having a less than ideal display, and both arriving after a very long generation.

If it gets 10,000 THQ licensed cartoon games then let's talk if it's a GBA successor lol

Is $450 really overpriced when the console standard for this gen was $500 to begin with and a base PS5 now costs $650 though?

The Switch 1's original price tag of $300 would cost $400 today adjusted for inflation, not much different from Switch 2.

Consoles are supposed to be cheaper than PC rigs, and they aren't in the long run.  Pay $650 for a ps5, 5 years of PSN is $480..  $1130.  I can build a solid PC rig for $1400, one that would bury the ps5 and outperform the Pro by a bit.

The biggest issue with the ps5 price hike, the tech is old.  Paying $650 for a GPU that is 2018 technology is crazy to me.  I think PC is a better deal, in the long run, than Playstation.  PC is suppose to offer a superior experience, not a superior and cheaper experience.  

Technically, PC that is at PS5 Pro level (slightly above actually) is around $1050, if you go with AM4 and 9060XT 16GB (there is a matter of OS though). So it's still more expensive than PS5 Pro. That said, with the subscription fees for PSN and massive discounts Steam has, PC is quite a bit better value for money.

That said, PC is not quite console experience and Sony exclusives are, apparently, going back to being PS only (well that and GTAVI, at least timed). But yeah, hiking prices up will most likely loose them some additional customers to PC ecosystem.