I suspect a lot of Nintendo's early games for the next Switch will basically looking like current Switch games on steroids with higher resolution + frame rate + better image quality and higher poly counts. Think they will pass on things like ray tracing. It may be a while before you see Switch 2 games from them that are on par with this.
That said there are plenty of 3rd party games that could be ported to a Switch 2, FF7 Remake itself included. There's a ton of PS4-era content that likely devs will want to port. So I think the graphics issue will kind of work itself out just fine, there will be plenty of titles that do take advantage of the hardware as likely a lot of 3rd parties will want their content on the system given the success of the OG Switch.
That said there are plenty of 3rd party games that could be ported to a Switch 2, FF7 Remake itself included. There's a ton of PS4-era content that likely devs will want to port. So I think the graphics issue will kind of work itself out just fine, there will be plenty of titles that do take advantage of the hardware as likely a lot of 3rd parties will want their content on the system given the success of the OG Switch.