Nintendo's sales historically have been lowest when they DON'T introduce a new gimmick and go for more of an iterative approach.
SNES sold less than the NES, N64 sold less than the SNES, and the Gamecube sold less than the N64. You could point to competitive reasons for why they sold less, but Wii had just as much competition but broke the mold and their handhelds have had similar patterns. Gameboy Advance sold less than the Gameboy, 3DS sold less than the DS.
Nintendo is acutely aware of this, but human nature suggests not fixing what isn't broken, but human nature also suggests that many families are happy enough to play the existing games out on Switch now.
Mario Kart and Animal Crossing are by far the best-selling Switch games. It's really difficult to get people who are perfectly happy with Mario Kart on the Switch to buy a Switch 2 for Mario Kart 9, especially for iterative graphics, when that wasn't the selling point to begin with.
The biggest success of the Switch was increasing the attach rate for specific franchises: Mario Kart, Zelda, and Smash have all reached new heights on the Switch.
A Switch 2 has a very high mountain the climb and a Switch 2 might have been better suited to bridge the gap between iterative and experimental. We'll have to see, especially if the price proves too high for many families to justify. I'd say Nintendo will wait out the recession and try to release the most powerful system they can within that 300-400 dollar price range. The problem is the longer they wait, the more people will eventually shift to a PS5 or Xbox Series.