It’s going to have a bit of a rough time with next gen third party games. The current gen machines are already having trouble with UE5 upscaling from 720p and still having fairly big FPS dips here and there.
I’d rather devs work with the hardware limitations to make sure games run at least a fairly solid 60fps, like by downgrading textures etc.. Instead of pushing the consoles beyond what they’re capable of like they do now with a locked 30fps or 60 with big dips. DF also stated similar in their newest video.
I think first party games have a chance of looking nice and running well on the new Switch as long as they don’t overdo it.