NVIDIA has small Tegra chips too, with the Jetson Nano next coming next year. That might use the same SoC as an upcoming Switch.
(and Orin/Atlan as more medium-sized Tegra)
These Grace CPU’s are not architected or designed for low power mobile or consoles in any way.
PlayStation and Xbox do aim for best graphics with the best hardware though, so they are more likely to go with this than anyone else.
Switch is averaging 20M units/year and PS4 is averaging 13M units/year.
And the Switch users I know generally don't care about PS5 graphics at all. It's not really the same market.
With a 4 year head start, the PS4 has 116.9m, the Switch has 103.5m[1]. Averaged over the years, the PS4 is lagging the Switch by nearly half - 14.6m/y vs 25.9m/y, no?
[1] https://en.wikipedia.org/wiki/List_of_best-selling_game_cons...
And it seems you're not the target if you cannot enjoy a game without good graphisms.
My personal favorites: Mario Odyssey, Mario 3D World, Luigi's Mansion 3, Breath of the Wild, Pikmin3, and Captain Toad.
My son is really into Splatoon 2, Minecraft Dungeons, and Mario Maker.
My wife plays all the Pokémon/Animal Crossing/Harvest Moon games.
We'll be playing the new Kirby game this evening.
Even a lot of the not-so-famous titles are great, like Mario + Rabbids Kingdom Battle.
My favorites: Towerfall, Bastion, Transistor, Pikuniku, untitled goose game, Stardew valley, Kentucky route zero.
Towerfall is like Smash Brothers Lite Lite, I love it.