If you crawl back up to the top level of this thread, it's someone pointing out that emulating it on PC is a lot nicer. Nintendo only needs enough emulation to match the Switch 1's performance on their new hardware; anything they get over its original performance is gravy. Plus they have the option of zipping into the games they really care about and putting in special cases for the most performance-intensive stuff.
The Steam Deck, AIUI, more or less at least matches the Switch 1 in emulation. Haven't done anything with it myself.
I don't think emulation is even remotely impossible, and every year it gets easier for them.
Emulation is a lot nicer when it works, but it doesn't most of the time (most games have glitches, and a significant number don't work at all). It is OK for a third party emulator to not offer a perfect experience, not OK for Nintendo itself. It is impossible (not-viable) for Nintendo to create a perfect Switch emulator that works for all titles, that you can just plug a Switch cartridge on the new console and it will guarantee it will work without glitches, there is just too many corner cases.
To sum up, it is impossible for them to make a hardware compatible console, impossible to make a 100% compatible emulator, so the only option is to market it as a completely new console (not backwards compatible by default), then have a small curated list of backwards compatible titles (either thru their "virtual console", or something like Microsoft did going from the original XBox to the 360, where you could put the original game and it would download a patch for the new console, only compatible with a limited list of games). But this limited backwards-compatibility options would create a big break in the Switch lifetime, so not something to be undertaken while the console is still going strong.
The Steam Deck, AIUI, more or less at least matches the Switch 1 in emulation. Haven't done anything with it myself.
I don't think emulation is even remotely impossible, and every year it gets easier for them.