The Switch was the gold mine. They were the first into the handheld market, and that was huge. The Switch 2, even though it has sold a ton, will never be able to keep up, because it's not that "special" thing anymore. Instead, it's a portable system that most people use docked (outside of Japan), and you get poor performance out of it because of its mobile specs.
There's plenty of room. Not to mention that we can pretty much erase the Xbox at this point, they're not offering anything. For example, let's say that you don't own any systems atm. You're searching for one, and the Switch 2, instead of being this weak mobile system, is more in line with the PS5. This Switch 2 has access to all third party system, has a proper online infrastructure and offers the same, or better visuals than the standard ps5. The same system will also have access to Nintendo exclusives, games you can't play anywhere else. Knowing how fuckedup current Sony is, and how much of a shitshow MS has been, why won't you get the Switch 2 right at this moment? You have mario kart, new DK and what would be an amazing looking Metroid 4 if built for ps5-like specs coming very soon. There's literally no reason why you wouldn't buy a powerful Switch 2, even as your primary system. Instead, Nintendo and their systems are permanently stuck as a side bitch, and will never be able to be the primary system of anyone that takes their hobby remotely seriously.
If that's the reasoning for mini discs, then they were drunk. Not only was the loading long like on every other system at that time, they messed up their console with those discs.
I don't believe for a second that a multi billion dollars company cares about a region. They might, and most likely do care more about Japan than CaliSony, if most sales are in NA, $$$$$ is all that matters.