Because don't get me wrong, the internals are a factor -- the ARM/x86 gap was significantly wider in the Tegra X1's day, it was already multiple years old when the Switch shipped, and being the only console on ARM can't have helped with attracting third parties. But as a Switch owner who has played a lot of Smash on the thing, what's really holding it back as a dedicated console is that it has a lot of nagging quality of life issues -- things like the inability to get a good first-party D-Pad, and their persistently baffling refusal to ship Ethernet despite it being standard on every competing platform since the original XBox. Their solution for the latter when they announced the details for Smash Ultimate was to say "lol hope you've got an adapter!" Which also makes the netplay worse at scale by ensuring that even more players are going to just resort to WiFi instead. (Not that the game's netcode can't also be outperformed by an emulator that people are using to play its 20-year-old predecessor.) These issues are one thing for a phone, but there's a completely separate bar for a device that's literally built for this.
The problem with the Switch isn't just the audience it's made for, or that because of that target it isn't keeping up with games like Cyberpunk. It's that even when you get to some of the areas where it should shine -- titles like Tetris 99, or Hollow Knight -- it's also tangibly worse at playing them than its competitors, for reasons that have nothing to do with its frame rate.
> Although Nintendo hasn't been as bad about this in recent years, I vowed to never give them money again after they wiped out countless numbers of YouTube channels with walkthroughs for games they don't even publish anymore.
They're not much better now. Check out what happened to The Big House for trying to use said emulator's netplay to run a Melee tournament during a plague, and all the ensuing fallout. I'm genuinely starting to consider migrating back off Nintendo consoles over it myself.