It's happened before. N64 was a powerful console that was limited by not having a CD-Rom drive. Gamecube was also more powerful than PS2 though not as powerful as Xbox 1. Of course, as I mentioned, it's not likely but who knows.
Both lackluster consoles marketing place wise, they were awesome by its time. N64 hurt by the media (cartridges), Gamecube (miniDVD) but the real culprit has been Nintendo's greedy closed-out and expensive licenses and anti-piracy measurements. Remember the Gameboy VR, they for sure have learned the lesson: Software over Hardware. Specially on consoles business where these are sold in a loss. By any stretch of the imagination they aren't big as Microsoft or Sony to handle with that.
They have reinvented themselves and turn more flexible, Satoru Iwata (RIP) was big part of it.
I mean, lets be honest they've become a very casual device company that serves casuals who will only buy a game or two and forget about the system. Maybe they want more of that hardcore audience that buys more games and then spends money on those games' microtransactions/DLC through out the entirety of the systems' life cycle.
Believed or not, gaming industry is sustained by casual players, competitive are a small niche. They are fewer by noisier.
Most of that hardcore audience are kids or young fellas, but the big wallets are on the 33 or above age, same people who grew with Nintendo who now has the acquisitive power and little time to play, that's why a hybrid portable console has been a success. Switch has been the most sale console on recent years, recently beaten a big milestone accomplish by Playstation.
I really doubt most Switch owners buy one or two games and drop it, that sounds like a judgment from someone coming from privileged scenario. Nintendo games keep coming and people pay, notice these are rarely on sale... (nintendo greedyness) and on top of that nintendo starts to remove games on purpose (Super Mario 3D World) to trigger a FOMO buying.
But its hardware is pretty limited and starts to show it. Recent games are making Switch break the sweat heavily, 4K standard is making pressure and I guess that's why they are obliged to release an upgraded version, because if it wasn't for that they will be OK no need to release a new version, they figure the production cost, they don't need to spent money to change its production chain and support a new device.
Not trying to argue with you or say that I'm right or your are not - no is an opinion, believe me I will LOVE to see a powerful nintendo like SuperNintendo back in the day (my favorite console) but this Japanese Company are very cautious, wise, because its fails and screw ups have created opportunities for the competition and even new consoles (PS).
I own a Nintendo Switch, and loved it, I wish it has better battery life and screen (OLED) and of course better controllers, which it seams give them Playstation and Microsoft the awareness that they can "Phoebus-Cartel" gaming devices.
Remember, thing aren't made to last because it will stop people to buy new things. And just like Ford discover at the beginning of the era of automobile, that they could change paint on cars on each year to create demand for their cars (before all were only black). Maybe now consumers can force companies to stop doing these "Apple downgrade force obsolescence" techniques but the only flaw that will make things obsolete is us, the consumer... we don't NEED Switch 4K, but they will create that need.
