What else besides graphics is the Switch not doing compared to the other consoles?
3 cores vs 8
3 gigs of ram vs 8-16
storage I/O
Switch made huge strides in finally getting the nintendo platform into a modern pipeline that supports modern code, with modern techniques in development pipelines (Most notable unreal support)
Most of these things will grow naturally as hardware releases.
It's not just about graphics, though it closely ties to image quality... but the gist of it is
You have to cram a fatty game into these specs... and in doing so make compromises (understandably so ... like you said ... a switch is never going to be a ps4 and a switch 2 is never going to be a ps5)
But currently these limiting factors affect how many enemies can be on screen at once, numbers of shadow casting lights, draw distances, streaming levels, Memory management, audio quality, foliage, resolutions framerates, texture fill rates, volumetrics, alpha transparencies, shader complexities, Dynamics and cloth sim, Animation systems ... the list goes on.
The main point here is the more they can eliminate these hurdles in their hardware design the better off the development pipeline is ... and being able to make it closer to other existing pipelines will allow development to not be so ... exclusive... and painful.
They could take dev feelings from "What a pain in my butt... I wish we didn't have to support this platform"... to "Hey wow that wasn't too bad and didn't take any more special steps than it needed to"
Now from a first party perspective I can't talk on from experience... but I can only presume that these limitations being lifted would be a relief... GRANTED... they only target one platform... so they develop within these limitations... but I'm positive these issues exist as evidenced by many pieces of software on the system... much of which if eliminated or at least greatly reduced would not only improve the development pipeline but also product quality.