Switch 1 was released in 2017. PD 1.0 was 2013 , and display port out was 2014. Both were supported by numerous devices by the time the switch 1 was out.
Granted they really wanted hdmi alt mode which was 2016 but the switch 1 doesn’t even support display port out which could have been coupled with a converter in the dock.
The simpler reason is that Nintendo both cheaps out on parts and has no incentive to increase compatibility. The number of users who care is not worth it for Nintendo to care, and they’re not afoul of any regulations.