Idk about all that. They are definitely very capable hardware engineers and one of the most meticulous game developers.
You might be right about the specific thing but odds are they are 100% more competent at the business, gaming, and tech aspects of the game industry than most of us armchair analysts. Like you think Nintendo doesn't get it, but really they probably get it more than any of us. Doesn't make them infallible or not make mistakes, but they (and their team of graduates who specialize in their fields lmao) definitely understand the market better than you or I. It's just not that easy. And it's a risky business, triple so when you are constantly trying to carve your own niche
When it comes to game development, I have a ton of faith in Nintendo. I wish they would try to evolve what they produce and not stay so reliant on what they've always done, but Nintendo has some of the best game developers in the world.
That being said, when it comes to hardware, especially when viewed from the perspective of the home console market, Nintendo has a poor track record. Other than the Wii, every home console has sold worse than the previous entry. The N64 struggled in part because of cartridges instead of adopting CD's. GameCube failed in part because of mini-DVD versus regular DVD. The Wii U was underpowered and had a cheap tablet/controller hybrid.
I wouldn't attribute all of Nintendo's problems in the home market to hardware decisions, but it has been a significant issue and regardless of the reasons Nintendo has been struggling in the home console market for a while now.
That's why I reject the notion that Nintendo wouldn't make a mistake like this because they would find a way to make it work. In fact, the reason I thought this design was fake ever since the first thread was in part because I don't think Nintendo would eschew physical buttons because they have always prioritized gameplay and thus input over basically everything else.
